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
 The Walt Disney Company  vs   Electronic Arts Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Considering 30-days investment horizon, The Walt Disney Company is expected to generate 0.56 times more return on investment than Electronic Arts. However, The Walt Disney Company is 1.79 times less risky than Electronic Arts. It trades about 0.19 of its potential returns per unit of risk. Electronic Arts Inc is currently generating about 0.09 per unit of risk. If you would invest  11,012  in The Walt Disney Company on February 22, 2017 and sell it today you would earn a total of  212.00  from holding The Walt Disney Company or generate 1.93% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Disney and Electronic Arts
0.78

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy90.48%
ValuesDaily Returns

Diversification

Poor 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

  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Walt Disney Company are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.

Electronic Arts

  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Electronic Arts Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.