Facebook Performance

Facebook Inc -- USA Stock  

USD 183.86  1.23  0.66%

On a scale of 0 to 100 Facebook holds performance score of 10. The firm shows Beta (market volatility) of 0.219 which denotes to the fact that as returns on market increase, Facebook returns are expected to increase less than the market. However during bear market, the loss on holding Facebook will be expected to be smaller as well.. Although it is extremely important to respect Facebook Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By reviewing Facebook Inc technical indicators you can presently evaluate if the expected return of 0.2113% will be sustainable into the future. Please utilizes Facebook Inc Variance, Maximum Drawdown and the relationship between Coefficient Of Variation and Jensen Alpha to make a quick decision on weather Facebook price patterns will revert.
 Time Horizon     30 Days    Login   to change

Facebook Inc Relative Risk vs. Return Landscape

If you would invest  17,736  in Facebook Inc on February 16, 2018 and sell it today you would earn a total of  773.00  from holding Facebook Inc or generate 4.36% return on investment over 30 days. Facebook Inc is generating 0.2113% of daily returns and assumes 1.2912% volatility on return distribution over the 30 days horizon. Put differently, 11% of equity instruments are less risky than the company on the bases of their historical return distribution and some 96% of equities are expected to be superior in generating returns on investments over the next 30 days.
 Daily Expected Return (%) 
      Risk (%) 
Allowing for the 30-days total investment horizon, Facebook Inc is expected to generate 1.35 times more return on investment than the market. However, the company is 1.35 times more volatile than its market benchmark. It trades about 0.16 of its potential returns per unit of risk. The DOW is currently generating roughly -0.04 per unit of risk.

Operating Margin

Facebook Inc Operating Margin
Based on recorded statements Facebook Inc has Operating Margin of 49.7%. This is 279.03% lower than that of the Technology sector, and 214.25% lower than that of Internet Information Providers industry, The Operating Margin for all stocks is 555.55% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

Facebook Daily Price Distribution

The median price of Facebook for the period between Fri, Feb 16, 2018 and Sun, Mar 18, 2018 is 181.46 with a coefficient of variation of 1.73. The daily time series for the period is distributed with a sample standard deviation of 3.14, arithmetic mean of 180.98, and mean deviation of 2.72. The Stock did not receive any noticable media coverage during the period.

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.

One Month Efficiency

Facebook Sharpe Ratio = 0.1636
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Estimated Market Risk

  actual daily
 89 %
of total potential

Expected Return

  actual daily
 4 %
of total potential

Risk-Adjusted Return

  actual daily
 10 %
of total potential
Based on monthly moving average Facebook is performing at about 10% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Facebook by adding it to a well-diversified portfolio.