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Correlation Between Facebook and IACInterActiveCorp

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

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Diversification Opportunities for Facebook and IACInterActiveCorp

Facebook Inc diversification synergy
0.84
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Very poor diversification

The 3 months correlation between Facebook and IACInterActiveCorp is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and IACInterActiveCorp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IACInterActiveCorp 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 IACInterActiveCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IACInterActiveCorp has no effect on the direction of Facebook i.e. Facebook and IACInterActiveCorp go up and down completely randomly.

Pair Corralation between Facebook and IACInterActiveCorp

Allowing for the 30-days total investment horizon, Facebook is expected to generate 0.83 times more return on investment than IACInterActiveCorp. However, Facebook is 1.21 times less risky than IACInterActiveCorp. It trades about 0.06 of its potential returns per unit of risk. IACInterActiveCorp is currently generating about 0.03 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 Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Facebook Inc  vs.  IACInterActiveCorp

 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 recent stock price disturbance, may contribute to short term losses for the investors.
IACInterActiveCorp 
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in IACInterActiveCorp are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, IACInterActiveCorp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

Facebook and IACInterActiveCorp Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.