Correlation Analysis Between Facebook and VeriSign

This module allows you to analyze existing cross correlation between Facebook and VeriSign. 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 and VeriSign.
Horizon     30 Days    Login   to change
Symbolsvs

Facebook Inc  vs.  VeriSign Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to under-perform the VeriSign. But the stock apears to be less risky and, when comparing its historical volatility, Facebook is 1.86 times less risky than VeriSign. The stock trades about -0.1 of its potential returns per unit of risk. The VeriSign is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  14,251  in VeriSign on October 14, 2018 and sell it today you would earn a total of  1,079  from holding VeriSign or generate 7.57% return on investment over 30 days.

Pair Corralation between Facebook and VeriSign

-0.08
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy91.3%
ValuesDaily Returns

Diversification

Facebook Inc diversification synergy

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 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 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 has no effect on the direction of Facebook i.e. Facebook and VeriSign go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Facebook  
0 

Risk-Adjusted Performance

Over the last 30 days Facebook has generated negative risk-adjusted returns adding no value to investors with long positions.
VeriSign  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VeriSign are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1053.37

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