Pair Correlation Between Disney and SINA

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

Pair Volatility

Considering 30-days investment horizon, The Walt Disney Company is expected to under-perform the SINA. But the stock apears to be less risky and, when comparing its historical volatility, The Walt Disney Company is 1.64 times less risky than SINA. The stock trades about -0.1 of its potential returns per unit of risk. The SINA Corporation is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  9,923  in SINA Corporation on August 21, 2017 and sell it today you would earn a total of  1,780  from holding SINA Corporation or generate 17.94% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Disney and SINA
-0.86

Parameters

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

Diversification

Pay attention

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

SINA

  
27 

Risk-Adjusted Performance

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