Correlation Between Getty Images and Quanergy Systems
Can any of the company-specific risk be diversified away by investing in both Getty Images and Quanergy Systems 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 Quanergy Systems 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 Quanergy Systems, you can compare the effects of market volatilities on Getty Images and Quanergy Systems 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 Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Quanergy Systems.
Diversification Opportunities for Getty Images and Quanergy Systems
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and Quanergy is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Quanergy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanergy Systems 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 Quanergy Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanergy Systems has no effect on the direction of Getty Images i.e., Getty Images and Quanergy Systems go up and down completely randomly.
Pair Corralation between Getty Images and Quanergy Systems
If you would invest 4.00 in Quanergy Systems on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Quanergy Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Getty Images Holdings vs. Quanergy Systems
Performance |
| Timeline |
| Getty Images Holdings |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Getty Images and Quanergy Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Quanergy Systems
The main advantage of trading using opposite Getty Images and Quanergy Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Quanergy Systems 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 Quanergy Systems will offset losses from the drop in Quanergy Systems' long position.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| Quanergy Systems vs. Highway Holdings Limited | Quanergy Systems vs. RBC Bearings Incorporated | Quanergy Systems vs. East Africa Metals | Quanergy Systems vs. Eldorado Gold Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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