Correlation Between Disney and GraniteShares Platinum

Can any of the company-specific risk be diversified away by investing in both Disney and GraniteShares Platinum 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 GraniteShares Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Walt Disney and GraniteShares Platinum Trust, you can compare the effects of market volatilities on Disney and GraniteShares Platinum 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 GraniteShares Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and GraniteShares Platinum.

Diversification Opportunities for Disney and GraniteShares Platinum

-0.46

Correlation Coefficient

Disney  GraniteShares Platinum

Very good diversification

The 3 months correlation between Disney and GraniteShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and GraniteShares Platinum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Platinum 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 GraniteShares Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares Platinum has no effect on the direction of Disney i.e., Disney and GraniteShares Platinum go up and down completely randomly.

Pair Corralation between Disney and GraniteShares Platinum

Considering the 90-day investment horizon Walt Disney is expected to under-perform the GraniteShares Platinum. In addition to that, Disney is 1.33 times more volatile than GraniteShares Platinum Trust. It trades about -0.13 of its total potential returns per unit of risk. GraniteShares Platinum Trust is currently generating about 0.11 per unit of volatility. If you would invest  905.00  in GraniteShares Platinum Trust on December 21, 2024 and sell it today you would earn a total of  60.00  from holding GraniteShares Platinum Trust or generate 6.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Walt Disney  vs.  GraniteShares Platinum Trust

Walt Disney

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walt Disney has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

GraniteShares Platinum

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares Platinum Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, GraniteShares Platinum may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Disney and GraniteShares Platinum

The main advantage of trading using opposite Disney and GraniteShares Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, GraniteShares Platinum 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 GraniteShares Platinum will offset losses from the drop in GraniteShares Platinum's long position.

The idea behind Walt Disney and GraniteShares Platinum Trust 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.