Correlation Between EverQuote and Facebook

Analyzing existing cross correlation between EverQuote and Facebook. You can compare the effects of market volatilities on EverQuote 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 EverQuote with a short position of Facebook. Check out your portfolio center. Please also check ongoing floating volatility patterns of EverQuote and Facebook.

Specify exactly 2 symbols:

Refresh Compare

Diversification Opportunities for EverQuote and Facebook

EverQuote Inc diversification synergy
<div class='circular--portrait-small' style='background:#2A0CD0;color: white;font-size:1.5em;padding-top: 7px;;'>EV</div>
<div class='circular--portrait-small' style='background:#FF9E01;color: white;font-size:1.5em;padding-top: 7px;;'>FA</div>

Poor diversification

The 3 months correlation between EverQuote and Facebook is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding EverQuote Inc and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook and EverQuote 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 EverQuote 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 EverQuote i.e. EverQuote and Facebook go up and down completely randomly.

Pair Corralation between EverQuote and Facebook

Given the investment horizon of 30 days, EverQuote is expected to generate 6.67 times more return on investment than Facebook. However, EverQuote is 6.67 times more volatile than Facebook. It trades about 0.1 of its potential returns per unit of risk. Facebook is currently generating about -0.1 per unit of risk. If you would invest  2,668  in EverQuote on March 4, 2020 and sell it today you would lose (330.00)  from holding EverQuote or give up 12.37% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

EverQuote Inc  vs.  Facebook Inc

 Performance (%) 

EverQuote Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in EverQuote are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, EverQuote reported solid returns over the last few months and may actually be approaching a breakup point.

Facebook Risk-Adjusted Performance

Over the last 30 days Facebook has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2020. The current disturbance may also be a sign of long term up-swing for the company investors.

EverQuote and Facebook Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page