Correlation Between 3M and Getty
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By analyzing existing cross correlation between 3M Company and Getty Images 975, you can compare the effects of market volatilities on 3M and Getty 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 3M with a short position of Getty. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and Getty.
Diversification Opportunities for 3M and Getty
Very good diversification
The 3 months correlation between 3M and Getty is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and Getty Images 975 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 975 and 3M 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 3M Company are associated (or correlated) with Getty. 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 975 has no effect on the direction of 3M i.e., 3M and Getty go up and down completely randomly.
Pair Corralation between 3M and Getty
Considering the 90-day investment horizon 3M is expected to generate 48.08 times less return on investment than Getty. But when comparing it to its historical volatility, 3M Company is 34.54 times less risky than Getty. It trades about 0.04 of its potential returns per unit of risk. Getty Images 975 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,935 in Getty Images 975 on September 2, 2024 and sell it today you would earn a total of 103.00 from holding Getty Images 975 or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.36% |
| Values | Daily Returns |
3M Company vs. Getty Images 975
Performance |
| Timeline |
| 3M Company |
| Getty Images 975 |
3M and Getty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and Getty
The main advantage of trading using opposite 3M and Getty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, Getty 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 will offset losses from the drop in Getty's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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