Correlation Between China Tontine and Getty Images
Can any of the company-specific risk be diversified away by investing in both China Tontine 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 China Tontine and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and Getty Images Holdings, you can compare the effects of market volatilities on China Tontine 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 China Tontine with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and Getty Images.
Diversification Opportunities for China Tontine and Getty Images
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines 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 China Tontine 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 China Tontine Wines 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 China Tontine i.e., China Tontine and Getty Images go up and down completely randomly.
Pair Corralation between China Tontine and Getty Images
Assuming the 90 days horizon China Tontine Wines is expected to generate 22.46 times more return on investment than Getty Images. However, China Tontine is 22.46 times more volatile than Getty Images Holdings. It trades about 0.1 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.01 per unit of risk. If you would invest 0.20 in China Tontine Wines on August 24, 2024 and sell it today you would earn a total of 6.90 from holding China Tontine Wines or generate 3450.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
China Tontine Wines vs. Getty Images Holdings
Performance |
| Timeline |
| China Tontine Wines |
| Getty Images Holdings |
China Tontine and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and Getty Images
The main advantage of trading using opposite China Tontine and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine 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.| China Tontine vs. Diageo PLC ADR | China Tontine vs. Constellation Brands Class | China Tontine vs. Thai Beverage PCL | China Tontine vs. Morningstar Unconstrained Allocation |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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