Correlation Between Getty Images and Western Union
Can any of the company-specific risk be diversified away by investing in both Getty Images and Western Union 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 Western Union 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 Western Union Co, you can compare the effects of market volatilities on Getty Images and Western Union 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 Western Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Western Union.
Diversification Opportunities for Getty Images and Western Union
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Getty and Western is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Western Union Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Union 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 Western Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Union has no effect on the direction of Getty Images i.e., Getty Images and Western Union go up and down completely randomly.
Pair Corralation between Getty Images and Western Union
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Western Union. In addition to that, Getty Images is 2.89 times more volatile than Western Union Co. It trades about 0.0 of its total potential returns per unit of risk. Western Union Co is currently generating about -0.01 per unit of volatility. If you would invest 1,228 in Western Union Co on August 28, 2024 and sell it today you would lose (118.00) from holding Western Union Co or give up 9.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Western Union Co
Performance |
| Timeline |
| Getty Images Holdings |
| Western Union |
Getty Images and Western Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Western Union
The main advantage of trading using opposite Getty Images and Western Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Western Union 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 Western Union will offset losses from the drop in Western Union's long position.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| Western Union vs. American Express | Western Union vs. Morningstar Unconstrained Allocation | Western Union vs. Sitka Gold Corp | Western Union vs. MSCI ACWI exAUCONSUMER |
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.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |