Correlation Between Disney and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Disney and Safestore Holdings 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 Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Safestore Holdings plc, you can compare the effects of market volatilities on Disney and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Safestore Holdings.
Diversification Opportunities for Disney and Safestore Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Disney and Safestore is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Disney i.e., Disney and Safestore Holdings go up and down completely randomly.
Pair Corralation between Disney and Safestore Holdings
Considering the 90-day investment horizon Walt Disney is expected to generate 0.8 times more return on investment than Safestore Holdings. However, Walt Disney is 1.26 times less risky than Safestore Holdings. It trades about 0.06 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about 0.0 per unit of risk. If you would invest 11,080 in Walt Disney on November 30, 2024 and sell it today you would earn a total of 300.00 from holding Walt Disney or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walt Disney vs. Safestore Holdings plc
Performance |
| Timeline |
| Walt Disney |
| Safestore Holdings plc |
Disney and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and Safestore Holdings
The main advantage of trading using opposite Disney and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Disney vs. Hall of Fame | Disney vs. Wisekey International Holding | Disney vs. Oriental Culture Holding | Disney vs. Aquagold International |
| Safestore Holdings vs. Plymouth Industrial REIT | Safestore Holdings vs. Terreno Realty | Safestore Holdings vs. Rexford Industrial Realty | Safestore Holdings vs. National Storage Affiliates |
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
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |