Correlation Between OPERA SOFTWARE and Shutterstock
Can any of the company-specific risk be diversified away by investing in both OPERA SOFTWARE and Shutterstock 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 OPERA SOFTWARE and Shutterstock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPERA SOFTWARE and Shutterstock, you can compare the effects of market volatilities on OPERA SOFTWARE and Shutterstock 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 OPERA SOFTWARE with a short position of Shutterstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPERA SOFTWARE and Shutterstock.
Diversification Opportunities for OPERA SOFTWARE and Shutterstock
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OPERA and Shutterstock is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding OPERA SOFTWARE and Shutterstock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shutterstock and OPERA SOFTWARE 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 OPERA SOFTWARE are associated (or correlated) with Shutterstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shutterstock has no effect on the direction of OPERA SOFTWARE i.e., OPERA SOFTWARE and Shutterstock go up and down completely randomly.
Pair Corralation between OPERA SOFTWARE and Shutterstock
Assuming the 90 days trading horizon OPERA SOFTWARE is expected to under-perform the Shutterstock. But the stock apears to be less risky and, when comparing its historical volatility, OPERA SOFTWARE is 5.64 times less risky than Shutterstock. The stock trades about -0.04 of its potential returns per unit of risk. The Shutterstock is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,852 in Shutterstock on November 3, 2024 and sell it today you would lose (69.00) from holding Shutterstock or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPERA SOFTWARE vs. Shutterstock
Performance |
| Timeline |
| OPERA SOFTWARE |
| Shutterstock |
OPERA SOFTWARE and Shutterstock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPERA SOFTWARE and Shutterstock
The main advantage of trading using opposite OPERA SOFTWARE and Shutterstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPERA SOFTWARE position performs unexpectedly, Shutterstock 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 Shutterstock will offset losses from the drop in Shutterstock's long position.| OPERA SOFTWARE vs. Boyd Gaming | OPERA SOFTWARE vs. Ultra Clean Holdings | OPERA SOFTWARE vs. Scientific Games | OPERA SOFTWARE vs. CVW CLEANTECH INC |
| Shutterstock vs. Thai Beverage Public | Shutterstock vs. PREMIER FOODS | Shutterstock vs. Kingdee International Software | Shutterstock vs. AECOM TECHNOLOGY |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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