Pair Correlation Between Disney and KongZhong

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

Pair Volatility

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 KongZhong
-0.06

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Diversification

Good diversification

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