Pair Correlation Between Disney and GameStop Corp

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

Pair Volatility

Considering 30-days investment horizon, The Walt Disney Company is expected to generate 0.19 times more return on investment than GameStop Corp. However, The Walt Disney Company is 5.36 times less risky than GameStop Corp. It trades about 0.19 of its potential returns per unit of risk. GameStop Corp is currently generating about -0.18 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 GameStop Corp
-0.67

Parameters

Time Period1 Month [change]
DirectionNegative DIS Moved Down vs GME
StrengthWeak
Accuracy90.48%
ValuesDaily Returns

Diversification

Excellent diversification

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

GameStop Corp

  
0 

Risk-Adjusted Performance

Over the last 30 days GameStop Corp has generated negative risk-adjusted returns adding no value to investors with long positions.