This module allows you to analyze existing cross correlation between United States Oil and Facebook Inc. You can compare the effects of market volatilities on United States 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 United States with a short position of Facebook. See also your portfolio center
. Please also check ongoing floating volatility patterns of United States
United States Oil vs Facebook Inc
Considering 30-days investment horizon, United States Oil is expected to generate 0.52 times more return on investment than Facebook. However, United States Oil is 1.92 times less risky than Facebook. It trades about 0.4 of its potential returns per unit of risk. Facebook Inc is currently generating about 0.17 per unit of risk. If you would invest 1,195 in United States Oil on December 23, 2017 and sell it today you would earn a total of 69 from holding United States Oil or generate 5.77% 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 United States Oil and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook Inc and United States 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 United States Oil 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 United States i.e. United States and Facebook go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in United States Oil are ranked lower than 26 (%) 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 11 (%) of all global equities and portfolios over the last 30 days.