Correlation Analysis Between Facebook and Douyu International

This module allows you to analyze existing cross correlation between Facebook and Douyu International Holdings Ltd Ads. You can compare the effects of market volatilities on Facebook and Douyu International 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 Douyu International. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and Douyu International.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Facebook  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Facebook may actually be approaching a critical reversion point that can send shares even higher in January 2020.
Douyu International  
00

Risk-Adjusted Performance

Over the last 30 days Douyu International Holdings Ltd Ads has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively unchanging which may send shares a bit higher in January 2020. The late uproar may also be a sign of mid-term up-swing for the firm leadership.

Facebook and Douyu International Volatility Contrast

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  Douyu International Holdings L

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 0.28 times more return on investment than Douyu International. However, Facebook is 3.52 times less risky than Douyu International. It trades about 0.08 of its potential returns per unit of risk. Douyu International Holdings Ltd Ads is currently generating about -0.06 per unit of risk. If you would invest  18,749  in Facebook on November 5, 2019 and sell it today you would earn a total of  1,198  from holding Facebook or generate 6.39% return on investment over 30 days.

Pair Corralation between Facebook and Douyu International

-0.19
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy74.42%
ValuesDaily Returns

Diversification Opportunities for Facebook and Douyu International

Facebook Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Douyu International Holdings L in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Douyu International 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 Douyu International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Douyu International has no effect on the direction of Facebook i.e. Facebook and Douyu International go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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