Correlation Between Cascades and Meta Platforms

Can any of the company-specific risk be diversified away by investing in both Cascades and Meta Platforms at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cascades and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cascades and Meta Platforms CDR, you can compare the effects of market volatilities on Cascades and Meta Platforms 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 Cascades with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cascades and Meta Platforms.

Diversification Opportunities for Cascades and Meta Platforms

-0.82

Correlation Coefficient

Cascades  Meta Platforms

Pay attention - limited upside

The 3 months correlation between Cascades and Meta is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cascades and Meta Platforms CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms CDR and Cascades 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 Cascades are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms CDR has no effect on the direction of Cascades i.e., Cascades and Meta Platforms go up and down completely randomly.

Pair Corralation between Cascades and Meta Platforms

Assuming the 90 days trading horizon Cascades is expected to generate 5.38 times less return on investment than Meta Platforms. But when comparing it to its historical volatility, Cascades is 1.22 times less risky than Meta Platforms. It trades about 0.01 of its potential returns per unit of risk. Meta Platforms CDR is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,006  in Meta Platforms CDR on September 14, 2025 and sell it today you would earn a total of  1,473  from holding Meta Platforms CDR or generate 73.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cascades  vs.  Meta Platforms CDR

Cascades

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cascades are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Cascades displayed solid returns over the last few months and may actually be approaching a breakup point.

Meta Platforms CDR

Risk-Adjusted Performance

Weakest

Over the last 90 days Meta Platforms CDR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cascades and Meta Platforms

The main advantage of trading using opposite Cascades and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cascades position performs unexpectedly, Meta Platforms can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Meta Platforms will offset losses from the drop in Meta Platforms' long position.

The idea behind Cascades and Meta Platforms CDR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.