Correlation Between Disney and Core Alternative

Can any of the company-specific risk be diversified away by investing in both Disney and Core Alternative 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 Core Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Walt Disney and Core Alternative ETF, you can compare the effects of market volatilities on Disney and Core Alternative 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 Core Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Core Alternative.

Diversification Opportunities for Disney and Core Alternative

-0.29

Correlation Coefficient

Disney  Core Alternative

Very good diversification

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

Pair Corralation between Disney and Core Alternative

Considering the 90-day investment horizon Walt Disney is expected to under-perform the Core Alternative. In addition to that, Disney is 3.04 times more volatile than Core Alternative ETF. It trades about -0.06 of its total potential returns per unit of risk. Core Alternative ETF is currently generating about 0.03 per unit of volatility. If you would invest  2,631  in Core Alternative ETF on September 13, 2025 and sell it today you would earn a total of  21.80  from holding Core Alternative ETF or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Walt Disney  vs.  Core Alternative ETF

Walt Disney

Risk-Adjusted Performance

Weakest

Over the last 90 days Walt Disney has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Disney is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Core Alternative ETF

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Core Alternative ETF are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Core Alternative is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Disney and Core Alternative

The main advantage of trading using opposite Disney and Core Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney position performs unexpectedly, Core Alternative 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 Core Alternative will offset losses from the drop in Core Alternative's long position.

The idea behind Walt Disney and Core Alternative ETF 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .