Correlation Analysis Between Facebook and GoDaddy

This module allows you to analyze existing cross correlation between Facebook and GoDaddy. You can compare the effects of market volatilities on Facebook and GoDaddy 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 GoDaddy. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and GoDaddy.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Facebook  
00

Risk-Adjusted Performance

Over the last 30 days Facebook has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
GoDaddy  
00

Risk-Adjusted Performance

Over the last 30 days GoDaddy has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2019. The current disturbance may also be a sign of long term up-swing for the company investors.

Facebook and GoDaddy Volatility Contrast

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  GoDaddy Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 0.86 times more return on investment than GoDaddy. However, Facebook is 1.17 times less risky than GoDaddy. It trades about -0.07 of its potential returns per unit of risk. GoDaddy is currently generating about -0.15 per unit of risk. If you would invest  20,466  in Facebook on September 22, 2019 and sell it today you would lose (1,490)  from holding Facebook or give up 7.28% of portfolio value over 30 days.

Pair Corralation between Facebook and GoDaddy

0.83
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Facebook and GoDaddy

Facebook Inc diversification synergy

Very poor diversification

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