Correlation Between Getty Images and Griffon
Can any of the company-specific risk be diversified away by investing in both Getty Images and Griffon 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 Griffon 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 Griffon, you can compare the effects of market volatilities on Getty Images and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Griffon.
Diversification Opportunities for Getty Images and Griffon
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Griffon is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Getty Images i.e., Getty Images and Griffon go up and down completely randomly.
Pair Corralation between Getty Images and Griffon
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Griffon. In addition to that, Getty Images is 1.21 times more volatile than Griffon. It trades about -0.28 of its total potential returns per unit of risk. Griffon is currently generating about 0.34 per unit of volatility. If you would invest 6,274 in Griffon on September 1, 2024 and sell it today you would earn a total of 2,156 from holding Griffon or generate 34.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Griffon
Performance |
| Timeline |
| Getty Images Holdings |
| Griffon |
Getty Images and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Griffon
The main advantage of trading using opposite Getty Images and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| Getty Images vs. MediaAlpha | Getty Images vs. Asset Entities Class | Getty Images vs. Shutterstock | Getty Images vs. Match Group |
| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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