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Correlation Between Facebook and Phoenix New

Analyzing existing cross correlation between Facebook and Phoenix New Media Limited. You can compare the effects of market volatilities on Facebook and Phoenix New 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 Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Facebook and Phoenix New.

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Diversification Opportunities for Facebook and Phoenix New

Facebook Inc diversification synergy
-0.73
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Pay attention - limited upside

The 3 months correlation between Facebook and Phoenix is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Phoenix New Media Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media 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 Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of Facebook i.e. Facebook and Phoenix New go up and down completely randomly.

Pair Corralation between Facebook and Phoenix New

Allowing for the 30-days total investment horizon, Facebook is expected to generate 0.29 times more return on investment than Phoenix New. However, Facebook is 3.44 times less risky than Phoenix New. It trades about 0.06 of its potential returns per unit of risk. Phoenix New Media Limited is currently generating about -0.13 per unit of risk. If you would invest  19,979  in Facebook on January 24, 2020 and sell it today you would earn a total of  1,039  from holding Facebook or generate 5.2% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Facebook Inc  vs.  Phoenix New Media Limited

 Performance (%) 
    
  Timeline 
Facebook 
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Facebook is not utilizing all of its potentials. The late stock price disturbance, may contribute to short term losses for the investors.
Phoenix New Media 
00

Risk-Adjusted Performance

Over the last 30 days Phoenix New Media Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in March 2020. The ongoing tumult may also be a sign of longer-term up-swing for the firm shareholders.

Facebook and Phoenix New Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.