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. In addition to that, Disney is 1.19 times more volatile than Hasbro Inc. It trades about -0.28 of its total potential returns per unit of risk. Hasbro Inc is currently generating about -0.04 per unit of volatility. If you would invest  10,170  in Hasbro Inc on April 22, 2017 and sell it today you would lose (65.00)  from holding Hasbro Inc or give up 0.64% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Disney and Hasbro
-0.29

Parameters

Time Period1 Month [change]
DirectionNegative DIS Moved Down vs HAS
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good 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.