Correlation Between Disney and Yoma Strategic

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Can any of the company-specific risk be diversified away by investing in both Disney and Yoma Strategic 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 Yoma Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Yoma Strategic Holdings, you can compare the effects of market volatilities on Disney and Yoma Strategic 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 Yoma Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Yoma Strategic.

Diversification Opportunities for Disney and Yoma Strategic

DisneyYomaDiversified AwayDisneyYomaDiversified Away100%
0.06
  Correlation Coefficient

Significant diversification

The 3 months correlation between Disney and Yoma is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Yoma Strategic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoma Strategic Holdings 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 Yoma Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoma Strategic Holdings has no effect on the direction of Disney i.e., Disney and Yoma Strategic go up and down completely randomly.

Pair Corralation between Disney and Yoma Strategic

Considering the 90-day investment horizon Walt Disney is expected to generate 0.56 times more return on investment than Yoma Strategic. However, Walt Disney is 1.79 times less risky than Yoma Strategic. It trades about 0.18 of its potential returns per unit of risk. Yoma Strategic Holdings is currently generating about -0.13 per unit of risk. If you would invest  9,578  in Walt Disney on October 26, 2024 and sell it today you would earn a total of  1,526  from holding Walt Disney or generate 15.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Walt Disney  vs.  Yoma Strategic Holdings

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 0510152025
JavaScript chart by amCharts 3.21.15DIS YMAIF
       Timeline  
Walt Disney 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Disney unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan95100105110115
Yoma Strategic Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Yoma Strategic Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.0580.060.0620.0640.0660.0680.070.072

Disney and Yoma Strategic Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.15-3.11-2.07-1.030.01741.142.273.414.54 0.050.100.150.20
JavaScript chart by amCharts 3.21.15DIS YMAIF
       Returns  

Pair Trading with Disney and Yoma Strategic

The main advantage of trading using opposite Disney and Yoma Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Yoma Strategic 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 Yoma Strategic will offset losses from the drop in Yoma Strategic's long position.
The idea behind Walt Disney and Yoma Strategic Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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