Correlation Between Getty Images and Rumble
Can any of the company-specific risk be diversified away by investing in both Getty Images and Rumble 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 Rumble 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 Rumble Inc, you can compare the effects of market volatilities on Getty Images and Rumble 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 Rumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Rumble.
Diversification Opportunities for Getty Images and Rumble
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Rumble is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Getty Images i.e., Getty Images and Rumble go up and down completely randomly.
Pair Corralation between Getty Images and Rumble
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Rumble. But the stock apears to be less risky and, when comparing its historical volatility, Getty Images Holdings is 1.16 times less risky than Rumble. The stock trades about -0.28 of its potential returns per unit of risk. The Rumble Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Rumble Inc on September 1, 2024 and sell it today you would earn a total of 126.00 from holding Rumble Inc or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Rumble Inc
Performance |
| Timeline |
| Getty Images Holdings |
| Rumble Inc |
Getty Images and Rumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Rumble
The main advantage of trading using opposite Getty Images and Rumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Rumble 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 Rumble will offset losses from the drop in Rumble's long position.| Getty Images vs. MediaAlpha | Getty Images vs. Asset Entities Class | Getty Images vs. Shutterstock | Getty Images vs. Match Group |
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 Positions Ratings module to 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.
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