Correlation Between Getty Images and Sumitomo Electric
Can any of the company-specific risk be diversified away by investing in both Getty Images and Sumitomo Electric 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 Sumitomo Electric 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 Sumitomo Electric Industries, you can compare the effects of market volatilities on Getty Images and Sumitomo Electric 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 Sumitomo Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Sumitomo Electric.
Diversification Opportunities for Getty Images and Sumitomo Electric
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Getty and Sumitomo is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Sumitomo Electric Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Electric 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 Sumitomo Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Electric has no effect on the direction of Getty Images i.e., Getty Images and Sumitomo Electric go up and down completely randomly.
Pair Corralation between Getty Images and Sumitomo Electric
If you would invest 1,657 in Sumitomo Electric Industries on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Sumitomo Electric Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Sumitomo Electric Industries
Performance |
| Timeline |
| Getty Images Holdings |
| Sumitomo Electric |
Getty Images and Sumitomo Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Sumitomo Electric
The main advantage of trading using opposite Getty Images and Sumitomo Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Sumitomo Electric 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 Sumitomo Electric will offset losses from the drop in Sumitomo Electric's long position.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| Sumitomo Electric vs. Analog Devices | Sumitomo Electric vs. Microchip Technology | Sumitomo Electric vs. IPG Photonics | Sumitomo Electric vs. Marti Technologies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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