This module allows you to analyze existing cross correlation between Facebook Inc and VeriSign Inc. You can compare the effects of market volatilities on Facebook and VeriSign 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 VeriSign. See also your portfolio center
. Please also check ongoing floating volatility patterns of Facebook
Facebook Inc vs VeriSign Inc
Allowing for the 30-days total investment horizon, Facebook Inc is expected to generate 1.04 times more return on investment than VeriSign. However, Facebook is 1.04 times more volatile than VeriSign Inc. It trades about 0.07 of its potential returns per unit of risk. VeriSign Inc is currently generating about -0.04 per unit of risk. If you would invest 17,789 in Facebook Inc on December 20, 2017 and sell it today you would earn a total of 309 from holding Facebook Inc or generate 1.74% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and VeriSign Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on VeriSign 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 VeriSign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VeriSign Inc has no effect on the direction of Facebook i.e. Facebook and VeriSign go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days VeriSign Inc has generated negative risk-adjusted returns adding no value to investors with long positions.