This module allows you to analyze existing cross correlation between The Walt Disney Company and KongZhong Corporation. You can compare the effects of market volatilities on Disney and KongZhong 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 KongZhong. See also your portfolio center
. Please also check ongoing floating volatility patterns of Disney
The Walt Disney Company vs KongZhong Corp.
Considering 30-days investment horizon, Disney is expected to generate 1.63 times less return on investment than KongZhong. In addition to that, Disney is 1.56 times more volatile than KongZhong Corporation. It trades about 0.19 of its total potential returns per unit of risk. KongZhong Corporation is currently generating about 0.49 per unit of volatility. If you would invest 718.00 in KongZhong Corporation on February 22, 2017 and sell it today you would earn a total of 25.00 from holding KongZhong Corporation or generate 3.48% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding The Walt Disney Company and KongZhong Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on KongZhong 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 KongZhong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KongZhong has no effect on the direction of Disney i.e. Disney and KongZhong go up and down completely randomly.
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.
Compared to the overall equity markets, risk-adjusted returns on investments in KongZhong Corporation are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.