Pair Correlation Between Marriott International and Facebook

This module allows you to analyze existing cross correlation between Marriott International Inc and Facebook Inc. You can compare the effects of market volatilities on Marriott International 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 Marriott International with a short position of Facebook. See also your portfolio center. Please also check ongoing floating volatility patterns of Marriott International and Facebook.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Marriott International Inc  vs   Facebook Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Marriott International Inc is expected to generate 0.84 times more return on investment than Facebook. However, Marriott International Inc is 1.19 times less risky than Facebook. It trades about 0.36 of its potential returns per unit of risk. Facebook Inc is currently generating about 0.2 per unit of risk. If you would invest  11,681  in Marriott International Inc on October 24, 2017 and sell it today you would earn a total of  958  from holding Marriott International Inc or generate 8.2% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Marriott International and Facebook
0.54

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Marriott International Inc and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook Inc and Marriott International 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 Marriott International Inc 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 Marriott International i.e. Marriott International and Facebook go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Marriott International

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Marriott International Inc are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.

Facebook Inc

  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.