Correlation Between Chindata Group and Facebook
Can any of the company-specific risk be diversified away by investing in both Chindata Group and Facebook 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 Chindata Group and Facebook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chindata Group Holdings and Facebook, you can compare the effects of market volatilities on Chindata Group 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 Chindata Group with a short position of Facebook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chindata Group and Facebook.
Diversification Opportunities for Chindata Group and Facebook
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chindata and Facebook is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chindata Group Holdings and Facebook in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Facebook and Chindata Group 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 Chindata Group Holdings 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 Chindata Group i.e., Chindata Group and Facebook go up and down completely randomly.
Pair Corralation between Chindata Group and Facebook
If you would invest (100.00) in Facebook on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Facebook or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chindata Group Holdings vs. Facebook
Performance |
| Timeline |
| Chindata Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chindata Group and Facebook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chindata Group and Facebook
The main advantage of trading using opposite Chindata Group and Facebook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chindata Group position performs unexpectedly, Facebook 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 Facebook will offset losses from the drop in Facebook's long position.| Chindata Group vs. GDS Holdings | Chindata Group vs. ExlService Holdings | Chindata Group vs. Gartner | Chindata Group vs. VNET Group DRC |
| Facebook vs. Meta Platforms | Facebook vs. Alphabet Inc Class A | Facebook vs. Twilio Inc | Facebook vs. Snap Inc |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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