Correlation Between Meta Platforms and Big Lots

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and Big Lots 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 Meta Platforms and Big Lots into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms Old and Big Lots, you can compare the effects of market volatilities on Meta Platforms and Big Lots 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 Meta Platforms with a short position of Big Lots. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Big Lots.

Diversification Opportunities for Meta Platforms and Big Lots

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Meta Platforms and Big Lots is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms Old and Big Lots in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Lots and Meta Platforms 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 Meta Platforms Old are associated (or correlated) with Big Lots. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Lots has no effect on the direction of Meta Platforms i.e., Meta Platforms and Big Lots go up and down completely randomly.

Pair Corralation between Meta Platforms and Big Lots

Allowing for the 90-day total investment horizon Meta Platforms Old is expected to generate 0.88 times more return on investment than Big Lots. However, Meta Platforms Old is 1.13 times less risky than Big Lots. It trades about -0.08 of its potential returns per unit of risk. Big Lots is currently generating about -0.1 per unit of risk. If you would invest  35,278  in Meta Platforms Old on March 31, 2022 and sell it today you would lose (19,210)  from holding Meta Platforms Old or give up 54.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.6%
ValuesDaily Returns

Meta Platforms Old  vs.  Big Lots

 Performance (%) 
      Timeline 
Meta Platforms Old 
Meta Platforms Performance
0 of 100
Over the last 90 days Meta Platforms Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Meta Platforms Price Channel

Big Lots 
Big Lots Performance
0 of 100
Over the last 90 days Big Lots has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0531
Payout Ratio
0.52
Last Split Factor
5:4
Forward Annual Dividend Rate
1.2
Dividend Date
2022-06-24
Ex Dividend Date
2022-06-09
Last Split Date
1997-06-25

Big Lots Price Channel

Meta Platforms and Big Lots Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Meta Platforms and Big Lots

The main advantage of trading using opposite Meta Platforms and Big Lots positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, Big Lots 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 Big Lots will offset losses from the drop in Big Lots' long position.
The idea behind Meta Platforms Old and Big Lots 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.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go