Correlation Between Howard Bancorp and Disney

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

Diversification Opportunities for Howard Bancorp and Disney

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Howard and Disney is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Howard Bancorp Inc and Walt Disney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walt Disney and Howard Bancorp 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 Howard Bancorp 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 Howard Bancorp i.e., Howard Bancorp and Disney go up and down completely randomly.

Pair Corralation between Howard Bancorp and Disney

If you would invest  2,330  in Howard Bancorp on June 26, 2022 and sell it today you would earn a total of  0.00  from holding Howard Bancorp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

Howard Bancorp Inc  vs.  Walt Disney

 Performance (%) 
       Timeline  
Howard Bancorp 
Howard Performance
0 of 100
Over the last 90 days Howard Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Howard Bancorp is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
Walt Disney 
Disney Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward indicators, Disney is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Disney Price Channel

Howard Bancorp and Disney Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Howard Bancorp and Disney

The main advantage of trading using opposite Howard Bancorp and Disney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Howard Bancorp 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.
Howard Bancorp vs. Sigma Lithium Corp
The idea behind Howard Bancorp and Walt Disney 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.
Disney vs. Costco Wholesale
Disney vs. Koninklijke Ahold NV
Disney vs. Aeon Ltd ADR
Disney vs. Target Corp
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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go