Correlation Between Disney and HEALTH
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By analyzing existing cross correlation between Walt Disney and HEALTH CARE REIT, you can compare the effects of market volatilities on Disney and HEALTH 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 HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and HEALTH.
Diversification Opportunities for Disney and HEALTH
Pay attention - limited upside
The 3 months correlation between Disney and HEALTH is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and HEALTH CARE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTH CARE REIT 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 HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTH CARE REIT has no effect on the direction of Disney i.e., Disney and HEALTH go up and down completely randomly.
Pair Corralation between Disney and HEALTH
Considering the 90-day investment horizon Walt Disney is expected to generate 0.74 times more return on investment than HEALTH. However, Walt Disney is 1.35 times less risky than HEALTH. It trades about 0.08 of its potential returns per unit of risk. HEALTH CARE REIT is currently generating about -0.04 per unit of risk. If you would invest 10,230 in Walt Disney on August 30, 2024 and sell it today you would earn a total of 1,530 from holding Walt Disney or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 61.11% |
| Values | Daily Returns |
Walt Disney vs. HEALTH CARE REIT
Performance |
| Timeline |
| Walt Disney |
| HEALTH CARE REIT |
Disney and HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and HEALTH
The main advantage of trading using opposite Disney and HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, HEALTH 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 HEALTH will offset losses from the drop in HEALTH's long position.| Disney vs. Liberty Media | Disney vs. Atlanta Braves Holdings, | Disney vs. News Corp B | Disney vs. News Corp A |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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