Correlation Between Disney and KraneShares
Can any of the company-specific risk be diversified away by investing in both Disney and KraneShares 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 KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and KraneShares, you can compare the effects of market volatilities on Disney and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and KraneShares.
Diversification Opportunities for Disney and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Disney and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of Disney i.e., Disney and KraneShares go up and down completely randomly.
Pair Corralation between Disney and KraneShares
If you would invest 9,839 in Walt Disney on November 19, 2024 and sell it today you would earn a total of 1,199 from holding Walt Disney or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Walt Disney vs. KraneShares
Performance |
| Timeline |
| Walt Disney |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Disney and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and KraneShares
The main advantage of trading using opposite Disney and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |