This module allows you to analyze existing cross correlation between Twitter and Weibo Corporation. You can compare the effects of market volatilities on Twitter and Weibo 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 Twitter with a short position of Weibo. See also your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Weibo.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Twitter may actually be approaching a critical reversion point that can send shares even higher in July 2019.
Over the last 30 days Weibo Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
Twitter and Weibo Volatility Contrast
Predicted Return Density
Twitter Inc vs. Weibo Corp.
Given the investment horizon of 30 days, Twitter is expected to generate 1.04 times more return on investment than Weibo. However, Twitter is 1.04 times more volatile than Weibo Corporation. It trades about 0.05 of its potential returns per unit of risk. Weibo Corporation is currently generating about -0.39 per unit of risk. If you would invest 3,452 in Twitter on May 16, 2019 and sell it today you would earn a total of 162.50 from holding Twitter or generate 4.71% return on investment over 30 days.
Pair Corralation between Twitter and Weibo
|Time Period||2 Months [change]|
Diversification Opportunities for Twitter and Weibo
Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and Weibo Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Weibo and Twitter 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 Twitter are associated (or correlated) with Weibo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weibo has no effect on the direction of Twitter i.e. Twitter and Weibo go up and down completely randomly.
See also your portfolio center. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.