Correlation Between Disney and Spark Networks
Can any of the company-specific risk be diversified away by investing in both Disney and Spark Networks 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 Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Spark Networks SE, you can compare the effects of market volatilities on Disney and Spark Networks 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 Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Spark Networks.
Diversification Opportunities for Disney and Spark Networks
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Disney and Spark is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Spark Networks SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks SE 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 Spark Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spark Networks SE has no effect on the direction of Disney i.e., Disney and Spark Networks go up and down completely randomly.
Pair Corralation between Disney and Spark Networks
If you would invest 10,230 in Walt Disney on August 31, 2024 and sell it today you would earn a total of 1,530 from holding Walt Disney or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Walt Disney vs. Spark Networks SE
Performance |
| Timeline |
| Walt Disney |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Disney and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and Spark Networks
The main advantage of trading using opposite Disney and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Spark Networks 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 Spark Networks will offset losses from the drop in Spark Networks' long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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