This module allows you to analyze existing cross correlation between Facebook and IACInterActiveCorp. You can compare the effects of market volatilities on Facebook and IACInterActiveCorp 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 IACInterActiveCorp. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and IACInterActiveCorp.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Facebook sustained solid returns over the last few months and may actually be approaching a breakup point.
Over the last 30 days IACInterActiveCorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, IACInterActiveCorp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
Facebook and IACInterActiveCorp Volatility Contrast
Predicted Return Density
Facebook Inc vs. IACInterActiveCorp
Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.14 times more return on investment than IACInterActiveCorp. However, Facebook is 1.14 times more volatile than IACInterActiveCorp. It trades about 0.12 of its potential returns per unit of risk. IACInterActiveCorp is currently generating about -0.01 per unit of risk. If you would invest 18,699 in Facebook on June 15, 2019 and sell it today you would earn a total of 1,692 from holding Facebook or generate 9.05% return on investment over 30 days.
Pair Corralation between Facebook and IACInterActiveCorp
|Time Period||2 Months [change]|
Diversification Opportunities for Facebook and IACInterActiveCorp
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and IACInterActiveCorp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IACInterActiveCorp 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 IACInterActiveCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IACInterActiveCorp has no effect on the direction of Facebook i.e. Facebook and IACInterActiveCorp go up and down completely randomly.
See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .