Correlation Between Disney and AFLAC
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By analyzing existing cross correlation between Walt Disney and AFLAC INC 4, you can compare the effects of market volatilities on Disney and AFLAC 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 AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and AFLAC.
Diversification Opportunities for Disney and AFLAC
Very good diversification
The 3 months correlation between Disney and AFLAC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and AFLAC INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC INC 4 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 AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC INC 4 has no effect on the direction of Disney i.e., Disney and AFLAC go up and down completely randomly.
Pair Corralation between Disney and AFLAC
Considering the 90-day investment horizon Walt Disney is expected to generate 0.54 times more return on investment than AFLAC. However, Walt Disney is 1.84 times less risky than AFLAC. It trades about 0.48 of its potential returns per unit of risk. AFLAC INC 4 is currently generating about -0.12 per unit of risk. If you would invest 9,620 in Walt Disney on August 28, 2024 and sell it today you would earn a total of 1,980 from holding Walt Disney or generate 20.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Walt Disney vs. AFLAC INC 4
Performance |
| Timeline |
| Walt Disney |
| AFLAC INC 4 |
Disney and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and AFLAC
The main advantage of trading using opposite Disney and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC's long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| AFLAC vs. AEP TEX INC | AFLAC vs. US BANK NATIONAL | AFLAC vs. Eat Beyond Global | AFLAC vs. Charles Schwab Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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