Correlation Between Disney and EAGLE
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By analyzing existing cross correlation between Walt Disney and EAGLE MATERIALS INC, you can compare the effects of market volatilities on Disney and EAGLE 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 EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and EAGLE.
Diversification Opportunities for Disney and EAGLE
Excellent diversification
The 3 months correlation between Disney and EAGLE is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and EAGLE MATERIALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS INC 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 EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS INC has no effect on the direction of Disney i.e., Disney and EAGLE go up and down completely randomly.
Pair Corralation between Disney and EAGLE
Considering the 90-day investment horizon Walt Disney is expected to generate 5.27 times more return on investment than EAGLE. However, Disney is 5.27 times more volatile than EAGLE MATERIALS INC. It trades about 0.43 of its potential returns per unit of risk. EAGLE MATERIALS INC is currently generating about -0.2 per unit of risk. If you would invest 9,624 in Walt Disney on August 24, 2024 and sell it today you would earn a total of 1,848 from holding Walt Disney or generate 19.2% 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. EAGLE MATERIALS INC
Performance |
| Timeline |
| Walt Disney |
| EAGLE MATERIALS INC |
Disney and EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and EAGLE
The main advantage of trading using opposite Disney and EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, EAGLE 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 EAGLE will offset losses from the drop in EAGLE's long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
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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