Pair Correlation Between Disney and Electronic Arts

This module allows you to analyze existing cross correlation between The Walt Disney Company and Electronic Arts Inc. You can compare the effects of market volatilities on Disney and Electronic Arts 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 Electronic Arts. See also your portfolio center. Please also check ongoing floating volatility patterns of Disney and Electronic Arts.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 The Walt Disney Company  vs   Electronic Arts Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, The Walt Disney Company is expected to generate 0.64 times more return on investment than Electronic Arts. However, The Walt Disney Company is 1.57 times less risky than Electronic Arts. It trades about 0.01 of its potential returns per unit of risk. Electronic Arts Inc is currently generating about -0.07 per unit of risk. If you would invest  9,810  in The Walt Disney Company on September 17, 2017 and sell it today you would earn a total of  3  from holding The Walt Disney Company or generate 0.03% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Disney and Electronic Arts
0.1

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Walt Disney Company and Electronic Arts Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts 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 The Walt Disney Company are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts Inc has no effect on the direction of Disney i.e. Disney and Electronic Arts go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

The Walt Disney

  
0 

Risk-Adjusted Performance

Over the last 30 days The Walt Disney Company has generated negative risk-adjusted returns adding no value to investors with long positions.

Electronic Arts Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Electronic Arts Inc has generated negative risk-adjusted returns adding no value to investors with long positions.