Correlation Analysis Between Facebook and DOW

This module allows you to analyze existing cross correlation between Facebook and DOW. You can compare the effects of market volatilities on Facebook and DOW 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 Facebook with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and DOW.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 95.25 times less return on investment than DOW. In addition to that, Facebook is 1.65 times more volatile than DOW. It trades about 0.0 of its total potential returns per unit of risk. DOW is currently generating about 0.04 per unit of volatility. If you would invest  2,650,400  in DOW on August 18, 2019 and sell it today you would earn a total of  57,282  from holding DOW or generate 2.16% return on investment over 30 days.

Pair Corralation between Facebook and DOW

0.17
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Facebook and DOW

Facebook Inc diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Facebook 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 Facebook are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Facebook i.e. Facebook and DOW go up and down completely randomly.
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