Pair Correlation Between Disney and International Game

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

Pair Volatility

Considering 30-days investment horizon, The Walt Disney Company is expected to under-perform the International Game. But the stock apears to be less risky and, when comparing its historical volatility, The Walt Disney Company is 1.61 times less risky than International Game. The stock trades about -0.1 of its potential returns per unit of risk. The International Game Technology PLC is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  2,002  in International Game Technology PLC on August 21, 2017 and sell it today you would earn a total of  352.00  from holding International Game Technology PLC or generate 17.58% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Disney and International Game
-0.54

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Excellent diversification

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

International Game T

  
27 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Game Technology PLC are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.