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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.

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Diversification Opportunities for EverQuote and Facebook

EverQuote Inc diversification synergy
0.63
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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 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

EverQuote Inc  vs.  Facebook Inc

 Performance (%) 
    
  Timeline 
EverQuote 
66

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 
00

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


 
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