Correlation Between Getty Images and Sea
Can any of the company-specific risk be diversified away by investing in both Getty Images and Sea 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 Sea 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 Sea, you can compare the effects of market volatilities on Getty Images and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Sea.
Diversification Opportunities for Getty Images and Sea
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Sea is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Getty Images i.e., Getty Images and Sea go up and down completely randomly.
Pair Corralation between Getty Images and Sea
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Sea. In addition to that, Getty Images is 1.7 times more volatile than Sea. It trades about -0.24 of its total potential returns per unit of risk. Sea is currently generating about 0.2 per unit of volatility. If you would invest 9,915 in Sea on August 26, 2024 and sell it today you would earn a total of 1,389 from holding Sea or generate 14.01% 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. Sea
Performance |
| Timeline |
| Getty Images Holdings |
| Sea |
Getty Images and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Sea
The main advantage of trading using opposite Getty Images and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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