Correlation Between Disney and Sculptor Capital
Can any of the company-specific risk be diversified away by investing in both Disney and Sculptor Capital 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 Sculptor Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Sculptor Capital Management, you can compare the effects of market volatilities on Disney and Sculptor Capital 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 Sculptor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Sculptor Capital.
Diversification Opportunities for Disney and Sculptor Capital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Disney and Sculptor is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Sculptor Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sculptor Capital Man 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 Sculptor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sculptor Capital Man has no effect on the direction of Disney i.e., Disney and Sculptor Capital go up and down completely randomly.
Pair Corralation between Disney and Sculptor Capital
If you would invest 9,579 in Walt Disney on September 4, 2024 and sell it today you would earn a total of 2,137 from holding Walt Disney or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walt Disney vs. Sculptor Capital Management
Performance |
| Timeline |
| Walt Disney |
| Sculptor Capital Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Disney and Sculptor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and Sculptor Capital
The main advantage of trading using opposite Disney and Sculptor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Sculptor Capital 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 Sculptor Capital will offset losses from the drop in Sculptor Capital's long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| Sculptor Capital vs. Federated Premier Municipal | Sculptor Capital vs. Blackrock Muniyield | Sculptor Capital vs. Diamond Hill Investment | Sculptor Capital vs. NXG NextGen Infrastructure |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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