Correlation Between Frasers Centrepoint and Disney
Can any of the company-specific risk be diversified away by investing in both Frasers Centrepoint and Disney at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Frasers Centrepoint and Disney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frasers Centrepoint Trust and Walt Disney, you can compare the effects of market volatilities on Frasers Centrepoint and Disney 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 Frasers Centrepoint with a short position of Disney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frasers Centrepoint and Disney.
Diversification Opportunities for Frasers Centrepoint and Disney
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Frasers and Disney is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Frasers Centrepoint Trust and Walt Disney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walt Disney and Frasers Centrepoint 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 Frasers Centrepoint Trust are associated (or correlated) with Disney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walt Disney has no effect on the direction of Frasers Centrepoint i.e., Frasers Centrepoint and Disney go up and down completely randomly.
Pair Corralation between Frasers Centrepoint and Disney
Assuming the 90 days horizon Frasers Centrepoint Trust is expected to generate 1.09 times more return on investment than Disney. However, Frasers Centrepoint is 1.09 times more volatile than Walt Disney. It trades about 0.02 of its potential returns per unit of risk. Walt Disney is currently generating about 0.01 per unit of risk. If you would invest 139.00 in Frasers Centrepoint Trust on January 20, 2024 and sell it today you would earn a total of 16.00 from holding Frasers Centrepoint Trust or generate 11.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Frasers Centrepoint Trust vs. Walt Disney
Performance |
Timeline |
Frasers Centrepoint Trust |
Walt Disney |
Frasers Centrepoint and Disney Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Frasers Centrepoint and Disney
The main advantage of trading using opposite Frasers Centrepoint and Disney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frasers Centrepoint position performs unexpectedly, Disney can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Disney will offset losses from the drop in Disney's long position.Frasers Centrepoint vs. Smart REIT | Frasers Centrepoint vs. Riocan REIT | Frasers Centrepoint vs. Plaza Retail REIT | Frasers Centrepoint vs. Choice Properties Real |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |