This module allows you to analyze existing cross correlation between iShares Italy Government Bond and Facebook Inc. You can compare the effects of market volatilities on iShares Italy 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 iShares Italy with a short position of Facebook. See also your portfolio center
. Please also check ongoing floating volatility patterns of iShares Italy
iShares Italy Government Bond vs Facebook Inc
Assuming 30 trading days horizon, iShares Italy Government Bond is expected to under-perform the Facebook. But the etf apears to be less risky and, when comparing its historical volatility, iShares Italy Government Bond is 5.96 times less risky than Facebook. The etf trades about -0.07 of its potential returns per unit of risk. The Facebook Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 17,745 in Facebook Inc on December 21, 2017 and sell it today you would earn a total of 384 from holding Facebook Inc or generate 2.16% 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 iShares Italy Government Bond and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook Inc and iShares Italy 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 iShares Italy Government Bond 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 iShares Italy i.e. iShares Italy and Facebook go up and down completely randomly.
Over the last 30 days iShares Italy Government Bond has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.