Pair Correlation Between Disney and Hasbro

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

Pair Volatility

Considering 30-days investment horizon, The Walt Disney Company is expected to under-perform the Hasbro. But the stock apears to be less risky and, when comparing its historical volatility, The Walt Disney Company is 1.2 times less risky than Hasbro. The stock trades about -0.1 of its potential returns per unit of risk. The Hasbro Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  9,484  in Hasbro Inc on August 21, 2017 and sell it today you would earn a total of  15.00  from holding Hasbro Inc or generate 0.16% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Disney and Hasbro
0.25

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Diversification

Modest diversification

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

Hasbro Inc

  
0 

Risk-Adjusted Performance

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