Correlation Analysis Between Twitter and Weibo

Analyzing 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
Symbolsvs
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Comparative Performance

Twitter  
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Risk-Adjusted Performance

Over the last 30 days Twitter has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of latest weak performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long running gains for the enterprise management.
Weibo  
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Risk-Adjusted Performance

Over the last 30 days Weibo Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Weibo is not utilizing all of its potentials. The existing stock price disturbance, may contribute to short term losses for the investors.

Twitter and Weibo Volatility Contrast

 Predicted Return Density 
    
  Returns 

Twitter Inc  vs.  Weibo Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, Twitter is expected to under-perform the Weibo. But the stock apears to be less risky and, when comparing its historical volatility, Twitter is 1.21 times less risky than Weibo. The stock trades about -0.05 of its potential returns per unit of risk. The Weibo Corporation is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  4,797  in Weibo Corporation on December 22, 2019 and sell it today you would lose (397.00)  from holding Weibo Corporation or give up 8.28% of portfolio value over 30 days.

Pair Corralation between Twitter and Weibo

0.15
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Twitter and Weibo

Twitter Inc diversification synergy

Average diversification

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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.