Pair Correlation Between Disney and SINA

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

Pair Volatility

Considering 30-days investment horizon, Disney is expected to generate 1.49 times less return on investment than SINA. But when comparing it to its historical volatility, The Walt Disney Company is 2.83 times less risky than SINA. It trades about 0.21 of its potential returns per unit of risk. SINA Corporation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  7,084  in SINA Corporation on February 26, 2017 and sell it today you would earn a total of  207.00  from holding SINA Corporation or generate 2.92% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Disney and SINA
0.69

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

The Walt Disney

  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Walt Disney Company are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

SINA

  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in SINA Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.