Correlation Between Disney and KRAFT
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By analyzing existing cross correlation between Walt Disney and KRAFT FOODS GROUP, you can compare the effects of market volatilities on Disney and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and KRAFT.
Diversification Opportunities for Disney and KRAFT
Very good diversification
The 3 months correlation between Disney and KRAFT is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and KRAFT FOODS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT FOODS GROUP 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT FOODS GROUP has no effect on the direction of Disney i.e., Disney and KRAFT go up and down completely randomly.
Pair Corralation between Disney and KRAFT
Considering the 90-day investment horizon Disney is expected to generate 1.45 times less return on investment than KRAFT. In addition to that, Disney is 1.04 times more volatile than KRAFT FOODS GROUP. It trades about 0.09 of its total potential returns per unit of risk. KRAFT FOODS GROUP is currently generating about 0.14 per unit of volatility. If you would invest 8,985 in KRAFT FOODS GROUP on November 4, 2024 and sell it today you would earn a total of 251.00 from holding KRAFT FOODS GROUP or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walt Disney vs. KRAFT FOODS GROUP
Performance |
| Timeline |
| Walt Disney |
| KRAFT FOODS GROUP |
Disney and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and KRAFT
The main advantage of trading using opposite Disney and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.| Disney vs. Liberty Media | Disney vs. Atlanta Braves Holdings, | Disney vs. News Corp B | Disney vs. News Corp A |
| KRAFT vs. AEP TEX INC | KRAFT vs. US BANK NATIONAL | KRAFT vs. Valley National Bancorp | KRAFT vs. LightPath Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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