Correlation Between ChampionX and Getty Images
Can any of the company-specific risk be diversified away by investing in both ChampionX 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 ChampionX and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Getty Images Holdings, you can compare the effects of market volatilities on ChampionX 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 ChampionX with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Getty Images.
Diversification Opportunities for ChampionX and Getty Images
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ChampionX and Getty is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX 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 ChampionX 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 ChampionX 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 ChampionX i.e., ChampionX and Getty Images go up and down completely randomly.
Pair Corralation between ChampionX and Getty Images
Considering the 90-day investment horizon ChampionX is expected to generate 0.51 times more return on investment than Getty Images. However, ChampionX is 1.97 times less risky than Getty Images. It trades about 0.03 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.03 per unit of risk. If you would invest 2,736 in ChampionX on September 1, 2024 and sell it today you would earn a total of 359.00 from holding ChampionX or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChampionX vs. Getty Images Holdings
Performance |
| Timeline |
| ChampionX |
| Getty Images Holdings |
ChampionX and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Getty Images
The main advantage of trading using opposite ChampionX and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX 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.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
| Getty Images vs. MediaAlpha | Getty Images vs. Asset Entities Class | Getty Images vs. Yelp Inc | Getty Images vs. Shutterstock |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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