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Correlation Between IQIYI and Facebook

Analyzing existing cross correlation between IQIYI and Facebook. You can compare the effects of market volatilities on IQIYI 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 IQIYI with a short position of Facebook. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQIYI and Facebook.

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Diversification Opportunities for IQIYI and Facebook

IQIYI Inc diversification synergy
0.75
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Poor diversification

The 3 months correlation between IQIYI and Facebook is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding IQIYI Inc and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook and IQIYI 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 IQIYI 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 IQIYI i.e. IQIYI and Facebook go up and down completely randomly.

Pair Corralation between IQIYI and Facebook

Allowing for the 30-days total investment horizon, IQIYI is expected to generate 1.67 times more return on investment than Facebook. However, IQIYI is 1.67 times more volatile than Facebook. It trades about 0.16 of its potential returns per unit of risk. Facebook is currently generating about 0.06 per unit of risk. If you would invest  1,908  in IQIYI on January 24, 2020 and sell it today you would earn a total of  502.00  from holding IQIYI or generate 26.31% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

IQIYI Inc  vs.  Facebook Inc

 Performance (%) 
    
  Timeline 
IQIYI 
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in IQIYI are ranked lower than 10 (%) 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 
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Facebook is not utilizing all of its potentials. The late stock price disturbance, may contribute to short term losses for the investors.

IQIYI and Facebook Volatility Contrast

 Predicted Return Density 
    
  Returns 
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