Correlation Analysis Between Facebook and IQIYI

Analyzing existing cross correlation between Facebook and IQIYI. You can compare the effects of market volatilities on Facebook and IQIYI 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 IQIYI. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and IQIYI.
Horizon     30 Days    Login   to change
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Comparative Performance

Facebook  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Facebook sustained solid returns over the last few months and may actually be approaching a breakup point.
IQIYI  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in IQIYI are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Inspite very weak forward-looking indicators, IQIYI displayed solid returns over the last few months and may actually be approaching a breakup point.

Facebook and IQIYI Volatility Contrast

 Predicted Return Density 
    
  Returns 

Facebook Inc  vs.  IQIYI Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 2.07 times less return on investment than IQIYI. But when comparing it to its historical volatility, Facebook is 2.75 times less risky than IQIYI. It trades about 0.24 of its potential returns per unit of risk. IQIYI is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,789  in IQIYI on December 25, 2019 and sell it today you would earn a total of  604.00  from holding IQIYI or generate 33.76% return on investment over 30 days.

Pair Corralation between Facebook and IQIYI

0.94
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Facebook and IQIYI

Facebook Inc diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and IQIYI Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IQIYI 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 IQIYI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQIYI has no effect on the direction of Facebook i.e. Facebook and IQIYI go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Reporting module to create custom reports across your portfolios and generate quick suggestion pitch.