Correlation Between Getty Images and IAC
Can any of the company-specific risk be diversified away by investing in both Getty Images and IAC 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 IAC 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 IAC Inc, you can compare the effects of market volatilities on Getty Images and IAC 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 IAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and IAC.
Diversification Opportunities for Getty Images and IAC
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getty and IAC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and IAC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAC Inc 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 IAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAC Inc has no effect on the direction of Getty Images i.e., Getty Images and IAC go up and down completely randomly.
Pair Corralation between Getty Images and IAC
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the IAC. In addition to that, Getty Images is 1.53 times more volatile than IAC Inc. It trades about -0.26 of its total potential returns per unit of risk. IAC Inc is currently generating about -0.06 per unit of volatility. If you would invest 5,146 in IAC Inc on August 27, 2024 and sell it today you would lose (290.00) from holding IAC Inc or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. IAC Inc
Performance |
| Timeline |
| Getty Images Holdings |
| IAC Inc |
Getty Images and IAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and IAC
The main advantage of trading using opposite Getty Images and IAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, IAC 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 IAC will offset losses from the drop in IAC's long position.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |