This module allows you to analyze existing cross correlation between Facebook Inc and NQ Mobile Inc. You can compare the effects of market volatilities on Facebook and NQ Mobile 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 NQ Mobile. See also your portfolio center
. Please also check ongoing floating volatility patterns of Facebook
and NQ Mobile
Facebook Inc vs NQ Mobile Inc
Allowing for the 30-days total investment horizon, Facebook Inc is expected to under-perform the NQ Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Facebook Inc is 1.59 times less risky than NQ Mobile. The stock trades about -0.1 of its potential returns per unit of risk. The NQ Mobile Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 217.00 in NQ Mobile Inc on February 18, 2018 and sell it today you would lose (3.00) from holding NQ Mobile Inc or give up 1.38% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and NQ Mobile Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQ Mobile Inc 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 Inc are associated (or correlated) with NQ Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQ Mobile Inc has no effect on the direction of Facebook i.e. Facebook and NQ Mobile go up and down completely randomly.
Over the last 30 days Facebook Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days NQ Mobile Inc has generated negative risk-adjusted returns adding no value to investors with long positions.