Pair Correlation Between United States and Facebook

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 and Facebook.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 United States Oil  vs   Facebook Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, United States Oil is expected to generate 1.06 times more return on investment than Facebook. However, United States is 1.06 times more volatile than Facebook Inc. It trades about 0.34 of its potential returns per unit of risk. Facebook Inc is currently generating about 0.19 per unit of risk. If you would invest  1,042  in United States Oil on October 21, 2017 and sell it today you would earn a total of  93  from holding United States Oil or generate 8.93% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between United States and Facebook
0.75

Parameters

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

Diversification

Poor 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

United States Oil

  
22 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in United States Oil are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.

Facebook Inc

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.