Pair Correlation Between Facebook and 21Vianet

This module allows you to analyze existing cross correlation between Facebook Inc and 21Vianet Group Inc. You can compare the effects of market volatilities on Facebook and 21Vianet 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 21Vianet. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and 21Vianet.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Facebook Inc  vs   21Vianet Group Inc
 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook Inc is expected to under-perform the 21Vianet. But the stock apears to be less risky and, when comparing its historical volatility, Facebook Inc is 2.02 times less risky than 21Vianet. The stock trades about -0.03 of its potential returns per unit of risk. The 21Vianet Group Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  761  in 21Vianet Group Inc on December 19, 2017 and sell it today you would earn a total of  81  from holding 21Vianet Group Inc or generate 10.64% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Facebook and 21Vianet
0.8

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and 21Vianet Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on 21Vianet Group 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 21Vianet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Vianet Group Inc has no effect on the direction of Facebook i.e. Facebook and 21Vianet go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Facebook Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Facebook Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

21Vianet Group Inc

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in 21Vianet Group Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.