Correlation Between Facebook and Chindata Group
Can any of the company-specific risk be diversified away by investing in both Facebook and Chindata Group 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 Facebook and Chindata Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Facebook and Chindata Group Holdings, you can compare the effects of market volatilities on Facebook and Chindata Group 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 Facebook with a short position of Chindata Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Facebook and Chindata Group.
Diversification Opportunities for Facebook and Chindata Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Facebook and Chindata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Facebook and Chindata Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chindata Group Holdings and Facebook 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 Facebook are associated (or correlated) with Chindata Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chindata Group Holdings has no effect on the direction of Facebook i.e., Facebook and Chindata Group go up and down completely randomly.
Pair Corralation between Facebook and Chindata Group
If you would invest 790.00 in Chindata Group Holdings on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Chindata Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Facebook vs. Chindata Group Holdings
Performance |
| Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chindata Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Facebook and Chindata Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Facebook and Chindata Group
The main advantage of trading using opposite Facebook and Chindata Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Facebook position performs unexpectedly, Chindata Group 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 Chindata Group will offset losses from the drop in Chindata Group's long position.| Facebook vs. Meta Platforms | Facebook vs. Alphabet Inc Class A | Facebook vs. Twilio Inc | Facebook vs. Snap Inc |
| Chindata Group vs. GDS Holdings | Chindata Group vs. ExlService Holdings | Chindata Group vs. Gartner | Chindata Group vs. VNET Group DRC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |