Correlation Between Getty Images and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Getty Images and CompuGroup Medical 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 Getty Images and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Images Holdings and CompuGroup Medical SE, you can compare the effects of market volatilities on Getty Images and CompuGroup Medical 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 Getty Images with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and CompuGroup Medical.
Diversification Opportunities for Getty Images and CompuGroup Medical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and CompuGroup is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Getty Images 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 Getty Images Holdings are associated (or correlated) with CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Getty Images i.e., Getty Images and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Getty Images and CompuGroup Medical
Given the investment horizon of 90 days Getty Images Holdings is expected to generate 0.83 times more return on investment than CompuGroup Medical. However, Getty Images Holdings is 1.21 times less risky than CompuGroup Medical. It trades about -0.05 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 499.00 in Getty Images Holdings on September 14, 2024 and sell it today you would lose (232.50) from holding Getty Images Holdings or give up 46.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.9% |
| Values | Daily Returns |
Getty Images Holdings vs. CompuGroup Medical SE
Performance |
| Timeline |
| Getty Images Holdings |
| CompuGroup Medical |
Getty Images and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and CompuGroup Medical
The main advantage of trading using opposite Getty Images and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| CompuGroup Medical vs. The Gap, | CompuGroup Medical vs. Sea | CompuGroup Medical vs. NL Industries | CompuGroup Medical vs. Sensient Technologies |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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