Correlation Between Rexel SA and Disney

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

Diversification Opportunities for Rexel SA and Disney

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Rexel and Disney is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Rexel SA ADR and Walt Disney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walt Disney and Rexel SA 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 Rexel SA ADR 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 Rexel SA i.e., Rexel SA and Disney go up and down completely randomly.

Pair Corralation between Rexel SA and Disney

Assuming the 90 days horizon Rexel SA ADR is expected to generate 1.46 times more return on investment than Disney. However, Rexel SA is 1.46 times more volatile than Walt Disney. It trades about 0.01 of its potential returns per unit of risk. Walt Disney is currently generating about -0.09 per unit of risk. If you would invest  1,998  in Rexel SA ADR on September 8, 2022 and sell it today you would lose (88.00)  from holding Rexel SA ADR or give up 4.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.66%
ValuesDaily Returns

Rexel SA ADR  vs.  Walt Disney

 Performance (%) 
       Timeline  
Rexel SA ADR 
Rexel Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Rexel SA ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Rexel SA showed solid returns over the last few months and may actually be approaching a breakup point.

Rexel Price Channel

Walt Disney 
Disney Performance
0 of 100
Over the last 90 days Walt Disney has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in January 2023. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Disney Price Channel

Rexel SA and Disney Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rexel SA and Disney

The main advantage of trading using opposite Rexel SA and Disney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rexel SA 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.
Rexel SA vs. Synnex
Rexel SA vs. Arrow Electronics
Rexel SA vs. Avnet Inc
Rexel SA vs. Insight Enterprises
The idea behind Rexel SA ADR 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. Home Depot
Disney vs. The Boeing
Disney vs. Coca-Cola Co
Disney vs. Caterpillar
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go