Correlation Analysis Between Avita Medical and Facebook

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

Avita Medical ADR  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Avita Medical Ltd ADR are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Avita Medical revealed solid returns over the last few months and may actually be approaching a breakup point.
Facebook  
1515

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 15 (%) 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.

Avita Medical and Facebook Volatility Contrast

 Predicted Return Density 
    
  Returns 

Avita Medical Ltd ADR  vs.  Facebook Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, Avita Medical Ltd ADR is expected to generate 4.33 times more return on investment than Facebook. However, Avita Medical is 4.33 times more volatile than Facebook. It trades about 0.05 of its potential returns per unit of risk. Facebook is currently generating about 0.22 per unit of risk. If you would invest  919.00  in Avita Medical Ltd ADR on December 20, 2019 and sell it today you would earn a total of  103.00  from holding Avita Medical Ltd ADR or generate 11.21% return on investment over 30 days.

Pair Corralation between Avita Medical and Facebook

0.56
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy84.93%
ValuesDaily Returns

Diversification Opportunities for Avita Medical and Facebook

Avita Medical Ltd ADR diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Avita Medical Ltd ADR and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook and Avita Medical 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 Avita Medical Ltd ADR 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 Avita Medical i.e. Avita Medical and Facebook go up and down completely randomly.
See also your portfolio center. Please also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of macroaxis ideas.