Correlation Between Disney and SPECTRA
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By analyzing existing cross correlation between Walt Disney and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Disney and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and SPECTRA.
Diversification Opportunities for Disney and SPECTRA
Very good diversification
The 3 months correlation between Disney and SPECTRA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Disney i.e., Disney and SPECTRA go up and down completely randomly.
Pair Corralation between Disney and SPECTRA
Considering the 90-day investment horizon Walt Disney is expected to generate 1.83 times more return on investment than SPECTRA. However, Disney is 1.83 times more volatile than SPECTRA ENERGY PARTNERS. It trades about 0.32 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about 0.01 per unit of risk. If you would invest 8,834 in Walt Disney on September 8, 2024 and sell it today you would earn a total of 2,839 from holding Walt Disney or generate 32.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 81.25% |
Values | Daily Returns |
Walt Disney vs. SPECTRA ENERGY PARTNERS
Performance |
Timeline |
Walt Disney |
SPECTRA ENERGY PARTNERS |
Disney and SPECTRA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Disney and SPECTRA
The main advantage of trading using opposite Disney and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
SPECTRA vs. Simpson Manufacturing | SPECTRA vs. Skechers USA | SPECTRA vs. Rocky Brands | SPECTRA vs. Vera Bradley |
Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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