Correlation Between Disney and Global Eagle

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

Diversification Opportunities for Disney and Global Eagle

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Disney and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Global Eagle Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Eagle Enterta 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 Walt Disney are associated (or correlated) with Global Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Eagle Enterta has no effect on the direction of Disney i.e., Disney and Global Eagle go up and down completely randomly.

Pair Corralation between Disney and Global Eagle

If you would invest  10,942  in Walt Disney on December 29, 2023 and sell it today you would earn a total of  1,156  from holding Walt Disney or generate 10.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Walt Disney  vs.  Global Eagle Entertainment

 Performance 
       Timeline  
Walt Disney 

Risk-Adjusted Performance

20 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal forward indicators, Disney unveiled solid returns over the last few months and may actually be approaching a breakup point.
Global Eagle Enterta 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Global Eagle Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Global Eagle is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Disney and Global Eagle Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Disney and Global Eagle

The main advantage of trading using opposite Disney and Global Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Global Eagle 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 Global Eagle will offset losses from the drop in Global Eagle's long position.
The idea behind Walt Disney and Global Eagle Entertainment 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 the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins