Correlation Analysis Between Facebook and IACInterActiveCorp

This module allows you to analyze 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. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and IACInterActiveCorp.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Facebook  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Facebook may actually be approaching a critical reversion point that can send shares even higher in December 2019.
IACInterActiveCorp  
00

Risk-Adjusted Performance

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

Facebook and IACInterActiveCorp Volatility Contrast

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  IACInterActiveCorp

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 0.72 times more return on investment than IACInterActiveCorp. However, Facebook is 1.39 times less risky than IACInterActiveCorp. It trades about 0.09 of its potential returns per unit of risk. IACInterActiveCorp is currently generating about -0.1 per unit of risk. If you would invest  18,355  in Facebook on October 20, 2019 and sell it today you would earn a total of  1,385  from holding Facebook or generate 7.55% return on investment over 30 days.

Pair Corralation between Facebook and IACInterActiveCorp

-0.16
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Facebook and IACInterActiveCorp

Facebook Inc diversification synergy

Good diversification

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.
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