This module allows you to analyze existing cross correlation between Twitter and Weibo Corporation. You can compare the effects of market volatilities on Twitter and Weibo 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 Twitter with a short position of Weibo. See also your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Weibo.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Twitter may actually be approaching a critical reversion point that can send shares even higher in November 2019.
Compared to the overall equity markets, risk-adjusted returns on investments in Weibo Corporation are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat conflicting basic indicators, Weibo sustained solid returns over the last few months and may actually be approaching a breakup point.
Twitter and Weibo Volatility Contrast
Predicted Return Density
Twitter Inc vs. Weibo Corp.
Given the investment horizon of 30 days, Twitter is expected to generate 2.7 times less return on investment than Weibo. But when comparing it to its historical volatility, Twitter is 1.39 times less risky than Weibo. It trades about 0.07 of its potential returns per unit of risk. Weibo Corporation is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,039 in Weibo Corporation on September 17, 2019 and sell it today you would earn a total of 1,060 from holding Weibo Corporation or generate 26.24% return on investment over 30 days.
Pair Corralation between Twitter and Weibo
|Time Period||3 Months [change]|
Diversification Opportunities for Twitter and Weibo
Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and Weibo Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Weibo and Twitter 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 Twitter are associated (or correlated) with Weibo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weibo has no effect on the direction of Twitter i.e. Twitter and Weibo go up and down completely randomly.
See also your portfolio center. Please also try Coins and Tokens Correlation module to utilize digital token correlation table to build portfolio of cryptocurrencies across multiple exchanges.