Correlation Between Perion Network and Getty Images
Can any of the company-specific risk be diversified away by investing in both Perion Network 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 Perion Network and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perion Network and Getty Images Holdings, you can compare the effects of market volatilities on Perion Network 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 Perion Network with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perion Network and Getty Images.
Diversification Opportunities for Perion Network and Getty Images
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perion and Getty is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Perion Network 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 Perion Network 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 Perion Network 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 Perion Network i.e., Perion Network and Getty Images go up and down completely randomly.
Pair Corralation between Perion Network and Getty Images
Given the investment horizon of 90 days Perion Network is expected to under-perform the Getty Images. In addition to that, Perion Network is 1.14 times more volatile than Getty Images Holdings. It trades about -0.09 of its total potential returns per unit of risk. Getty Images Holdings is currently generating about -0.05 per unit of volatility. If you would invest 527.00 in Getty Images Holdings on August 27, 2024 and sell it today you would lose (241.00) from holding Getty Images Holdings or give up 45.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perion Network vs. Getty Images Holdings
Performance |
| Timeline |
| Perion Network |
| Getty Images Holdings |
Perion Network and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perion Network and Getty Images
The main advantage of trading using opposite Perion Network and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perion Network 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.| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello Group |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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