Pair Correlation Between United States and Facebook

This module allows you to analyze existing cross correlation between United States Oil and Facebook. 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.
 Time 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 0.74 times more return on investment than Facebook. However, United States Oil is 1.34 times less risky than Facebook. It trades about 0.17 of its potential returns per unit of risk. Facebook is currently generating about -0.06 per unit of risk. If you would invest  1,229  in United States Oil on March 23, 2018 and sell it today you would earn a total of  146.00  from holding United States Oil or generate 11.88% return on investment over 30 days.

Pair Corralation between United States and Facebook

-0.57
Time Period2 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy97.67%
ValuesDaily Returns

Diversification

Excellent 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 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 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  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in United States Oil are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.
Facebook  
0 

Risk-Adjusted Performance

Over the last 30 days Facebook has generated negative risk-adjusted returns adding no value to investors with long positions.

My Equities

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1087.7

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See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.