Correlation Between Disney and LOEWS
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By analyzing existing cross correlation between Walt Disney and LOEWS P 6, you can compare the effects of market volatilities on Disney and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and LOEWS.
Diversification Opportunities for Disney and LOEWS
Excellent diversification
The 3 months correlation between Disney and LOEWS is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and LOEWS P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 6 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 6 has no effect on the direction of Disney i.e., Disney and LOEWS go up and down completely randomly.
Pair Corralation between Disney and LOEWS
Considering the 90-day investment horizon Walt Disney is expected to generate 1.31 times more return on investment than LOEWS. However, Disney is 1.31 times more volatile than LOEWS P 6. It trades about 0.04 of its potential returns per unit of risk. LOEWS P 6 is currently generating about 0.01 per unit of risk. If you would invest 9,183 in Walt Disney on August 29, 2024 and sell it today you would earn a total of 2,577 from holding Walt Disney or generate 28.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.63% |
| Values | Daily Returns |
Walt Disney vs. LOEWS P 6
Performance |
| Timeline |
| Walt Disney |
| LOEWS P 6 |
Disney and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and LOEWS
The main advantage of trading using opposite Disney and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| LOEWS vs. Empresa Distribuidora y | LOEWS vs. Stevanato Group SpA | LOEWS vs. Suburban Propane Partners | LOEWS vs. Acco Brands |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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