Correlation Between Disney and Airgain

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Disney and Airgain 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 Disney and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Airgain, you can compare the effects of market volatilities on Disney and Airgain 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 Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Airgain.

Diversification Opportunities for Disney and Airgain

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between Disney and Airgain is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain 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 Walt Disney are associated (or correlated) with Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of Disney i.e., Disney and Airgain go up and down completely randomly.

Pair Corralation between Disney and Airgain

Considering the 90-day investment horizon Walt Disney is expected to generate 0.5 times more return on investment than Airgain. However, Walt Disney is 2.01 times less risky than Airgain. It trades about 0.0 of its potential returns per unit of risk. Airgain is currently generating about -0.01 per unit of risk. If you would invest  13,218  in Walt Disney on May 18, 2022 and sell it today you would lose (792.00)  from holding Walt Disney or give up 5.99% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Walt Disney  vs.  Airgain

 Performance (%) 
       Timeline  
Walt Disney 
Disney Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Disney reported solid returns over the last few months and may actually be approaching a breakup point.

Disney Price Channel

Airgain 
Airgain Performance
0 of 100
Over the last 90 days Airgain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Airgain Price Channel

Disney and Airgain Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Disney and Airgain

The main advantage of trading using opposite Disney and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.
The idea behind Walt Disney and Airgain pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Airgain

Pair trading matchups for Airgain

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
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
Go