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
Symbolsvs
 The Walt Disney Company  vs   GameStop Corp.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Considering 30-days investment horizon, Disney is expected to generate 9.28 times less return on investment than GameStop Corp. But when comparing it to its historical volatility, The Walt Disney Company is 3.37 times less risky than GameStop Corp. It trades about 0.14 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest  2,085  in GameStop Corp on March 26, 2017 and sell it today you would earn a total of  237.00  from holding GameStop Corp or generate 11.37% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Disney and GameStop Corp
0.6

Parameters

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

Diversification

Poor 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

  
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.

GameStop Corp

  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in GameStop Corp are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.