Correlation Between Allegheny Technologies and Getty Images
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and Getty Images 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 Allegheny Technologies and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegheny Technologies Incorporated and Getty Images Holdings, you can compare the effects of market volatilities on Allegheny Technologies and Getty Images 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 Allegheny Technologies with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Getty Images.
Diversification Opportunities for Allegheny Technologies and Getty Images
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allegheny and Getty is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings and Allegheny Technologies 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 Allegheny Technologies Incorporated are associated (or correlated) with Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and Getty Images go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Getty Images
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to generate 0.66 times more return on investment than Getty Images. However, Allegheny Technologies Incorporated is 1.52 times less risky than Getty Images. It trades about 0.08 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.04 per unit of risk. If you would invest 4,091 in Allegheny Technologies Incorporated on September 4, 2024 and sell it today you would earn a total of 1,883 from holding Allegheny Technologies Incorporated or generate 46.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Getty Images Holdings
Performance |
| Timeline |
| Allegheny Technologies |
| Getty Images Holdings |
Allegheny Technologies and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Getty Images
The main advantage of trading using opposite Allegheny Technologies and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. Northwest Pipe |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |