Pair Correlation Between Disney and Electronic Arts

This module allows you to analyze existing cross correlation between The Walt Disney Company and Electronic Arts Inc. You can compare the effects of market volatilities on Disney and Electronic Arts 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 Disney with a short position of Electronic Arts. See also your portfolio center. Please also check ongoing floating volatility patterns of Disney and Electronic Arts.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 The Walt Disney Company  vs   Electronic Arts Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Considering 30-days investment horizon, Disney is expected to generate 3.56 times less return on investment than Electronic Arts. But when comparing it to its historical volatility, The Walt Disney Company is 1.64 times less risky than Electronic Arts. It trades about 0.14 of its potential returns per unit of risk. Electronic Arts Inc is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  8,902  in Electronic Arts Inc on March 26, 2017 and sell it today you would earn a total of  379.00  from holding Electronic Arts Inc or generate 4.26% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Disney and Electronic Arts
0.59

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

The Walt Disney

  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Walt Disney Company are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

Electronic Arts

  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Electronic Arts Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.