Correlation Between Disney and IShares USD
Can any of the company-specific risk be diversified away by investing in both Disney and IShares USD 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 IShares USD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and iShares USD Green, you can compare the effects of market volatilities on Disney and IShares USD 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 IShares USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and IShares USD.
Diversification Opportunities for Disney and IShares USD
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Disney and IShares is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and iShares USD Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares USD Green 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 IShares USD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares USD Green has no effect on the direction of Disney i.e., Disney and IShares USD go up and down completely randomly.
Pair Corralation between Disney and IShares USD
Considering the 90-day investment horizon Walt Disney is expected to generate 4.97 times more return on investment than IShares USD. However, Disney is 4.97 times more volatile than iShares USD Green. It trades about 0.04 of its potential returns per unit of risk. iShares USD Green is currently generating about 0.05 per unit of risk. If you would invest 9,265 in Walt Disney on August 30, 2024 and sell it today you would earn a total of 2,495 from holding Walt Disney or generate 26.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walt Disney vs. iShares USD Green
Performance |
| Timeline |
| Walt Disney |
| iShares USD Green |
Disney and IShares USD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and IShares USD
The main advantage of trading using opposite Disney and IShares USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, IShares USD 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 IShares USD will offset losses from the drop in IShares USD's long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| IShares USD vs. iShares ESG USD | IShares USD vs. iShares ESG 1 5 | IShares USD vs. iShares ESG Aggregate | IShares USD vs. iShares ESG Aware |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |