This module allows you to analyze existing cross correlation between Facebook and XU100. You can compare the effects of market volatilities on Facebook and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and XU100.
|Horizon||30 Days Login to change|
Predicted Return Density
Facebook Inc vs. XU100
Allowing for the 30-days total investment horizon, Facebook is expected to under-perform the XU100. In addition to that, Facebook is 1.17 times more volatile than XU100. It trades about -0.03 of its total potential returns per unit of risk. XU100 is currently generating about 0.03 per unit of volatility. If you would invest 9,557,312 in XU100 on July 25, 2019 and sell it today you would earn a total of 157,592 from holding XU100 or generate 1.65% return on investment over 30 days.
Pair Corralation between Facebook and XU100
|Time Period||2 Months [change]|
Diversification Opportunities for Facebook and XU100
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of Facebook i.e. Facebook and XU100 go up and down completely randomly.
See also your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.