Correlation Between Disney and Segro Plc
Can any of the company-specific risk be diversified away by investing in both Disney and Segro Plc 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 Segro Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Segro Plc, you can compare the effects of market volatilities on Disney and Segro Plc 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 Segro Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Segro Plc.
Diversification Opportunities for Disney and Segro Plc
Pay attention - limited upside
The 3 months correlation between Disney and Segro is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Segro Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segro Plc 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 Segro Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segro Plc has no effect on the direction of Disney i.e., Disney and Segro Plc go up and down completely randomly.
Pair Corralation between Disney and Segro Plc
Considering the 90-day investment horizon Walt Disney is expected to generate 0.58 times more return on investment than Segro Plc. However, Walt Disney is 1.73 times less risky than Segro Plc. It trades about 0.53 of its potential returns per unit of risk. Segro Plc is currently generating about -0.02 per unit of risk. If you would invest 9,581 in Walt Disney on September 2, 2024 and sell it today you would earn a total of 2,166 from holding Walt Disney or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walt Disney vs. Segro Plc
Performance |
| Timeline |
| Walt Disney |
| Segro Plc |
Disney and Segro Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and Segro Plc
The main advantage of trading using opposite Disney and Segro Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Segro Plc 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 Segro Plc will offset losses from the drop in Segro Plc's long position.| Disney vs. ADTRAN Inc | Disney vs. Belden Inc | Disney vs. ADC Therapeutics SA | Disney vs. Comtech Telecommunications Corp |
| Segro Plc vs. LXP Industrial Trust | Segro Plc vs. Plymouth Industrial REIT | Segro Plc vs. EastGroup Properties | Segro Plc vs. Americold Realty Trust |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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