Correlation Between Cowen and Getty Images
Can any of the company-specific risk be diversified away by investing in both Cowen 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 Cowen and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cowen Group and Getty Images Holdings, you can compare the effects of market volatilities on Cowen 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 Cowen with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cowen and Getty Images.
Diversification Opportunities for Cowen and Getty Images
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cowen and Getty is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cowen Group 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 Cowen 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 Cowen Group 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 Cowen i.e., Cowen and Getty Images go up and down completely randomly.
Pair Corralation between Cowen and Getty Images
If you would invest 3,899 in Cowen Group on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Cowen Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cowen Group vs. Getty Images Holdings
Performance |
| Timeline |
| Cowen Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Getty Images Holdings |
Cowen and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cowen and Getty Images
The main advantage of trading using opposite Cowen and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cowen 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.| Cowen vs. Getty Images Holdings | Cowen vs. Primoris Services | Cowen vs. RBC Bearings Incorporated | Cowen vs. EMCOR Group |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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