This module allows you to analyze existing cross correlation between FirstEnergy Corp and Facebook Inc. You can compare the effects of market volatilities on FirstEnergy Corp and Facebook 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 FirstEnergy Corp with a short position of Facebook. See also your portfolio center
. Please also check ongoing floating volatility patterns of FirstEnergy Corp
FirstEnergy Corp vs Facebook Inc
Allowing for the 30-days total investment horizon, FirstEnergy Corp is expected to generate 0.78 times more return on investment than Facebook. However, FirstEnergy Corp is 1.28 times less risky than Facebook. It trades about 0.32 of its potential returns per unit of risk. Facebook Inc is currently generating about 0.2 per unit of risk. If you would invest 3,201 in FirstEnergy Corp on October 24, 2017 and sell it today you would earn a total of 223 from holding FirstEnergy Corp or generate 6.97% return on investment over 30 days.
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Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding FirstEnergy Corp and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook Inc and FirstEnergy Corp 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 FirstEnergy Corp are associated (or correlated) with Facebook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Facebook Inc has no effect on the direction of FirstEnergy Corp i.e. FirstEnergy Corp and Facebook go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in FirstEnergy Corp are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.