Two Equities Correlation Analysis

This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
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 2.53 times more return on investment than DOW. However, Facebook is 2.53 times more volatile than DOW. It trades about 0.22 of its potential returns per unit of risk. DOW is currently generating about 0.3 per unit of risk. If you would invest  18,976  in Facebook on December 20, 2019 and sell it today you would earn a total of  3,238  from holding Facebook or generate 17.06% return on investment over 30 days.

Pair Corralation between Facebook and DOW

0.93
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for Facebook and DOW

Facebook Inc diversification synergy

Almost no 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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