Correlation Analysis Between Facebook and NZSE

This module allows you to analyze existing cross correlation between Facebook and NZSE. You can compare the effects of market volatilities on Facebook and NZSE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Facebook with a short position of NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and NZSE.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  NZSE

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to under-perform the NZSE. In addition to that, Facebook is 2.06 times more volatile than NZSE. It trades about -0.06 of its total potential returns per unit of risk. NZSE is currently generating about 0.11 per unit of volatility. If you would invest  1,041,829  in NZSE on July 22, 2019 and sell it today you would earn a total of  29,103  from holding NZSE or generate 2.79% return on investment over 30 days.

Pair Corralation between Facebook and NZSE

-0.11
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy83.33%
ValuesDaily Returns

Diversification Opportunities for Facebook and NZSE

Facebook Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE and Facebook is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Facebook are associated (or correlated) with NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of Facebook i.e. Facebook and NZSE go up and down completely randomly.
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See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.


 
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