Correlation Between Integral and Getty Images
Can any of the company-specific risk be diversified away by investing in both Integral and Getty Images 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 Integral and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Getty Images Holdings, you can compare the effects of market volatilities on Integral and Getty Images 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 Integral with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Getty Images.
Diversification Opportunities for Integral and Getty Images
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Integral and Getty is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings and Integral 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 Integral Ad Science are associated (or correlated) with Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Integral i.e., Integral and Getty Images go up and down completely randomly.
Pair Corralation between Integral and Getty Images
Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.72 times more return on investment than Getty Images. However, Integral Ad Science is 1.39 times less risky than Getty Images. It trades about -0.06 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.26 per unit of risk. If you would invest 1,188 in Integral Ad Science on August 27, 2024 and sell it today you would lose (80.00) from holding Integral Ad Science or give up 6.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Getty Images Holdings
Performance |
| Timeline |
| Integral Ad Science |
| Getty Images Holdings |
Integral and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Getty Images
The main advantage of trading using opposite Integral and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare Media |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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