Correlation Between Shutterstock and Match
Can any of the company-specific risk be diversified away by investing in both Shutterstock and Match 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 Shutterstock and Match into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shutterstock and Match Group, you can compare the effects of market volatilities on Shutterstock and Match 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 Shutterstock with a short position of Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shutterstock and Match.
Diversification Opportunities for Shutterstock and Match
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shutterstock and Match is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shutterstock and Match Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Match Group and Shutterstock 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 Shutterstock are associated (or correlated) with Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Match Group has no effect on the direction of Shutterstock i.e., Shutterstock and Match go up and down completely randomly.
Pair Corralation between Shutterstock and Match
Given the investment horizon of 90 days Shutterstock is expected to generate 10.95 times less return on investment than Match. In addition to that, Shutterstock is 3.1 times more volatile than Match Group. It trades about 0.01 of its total potential returns per unit of risk. Match Group is currently generating about 0.22 per unit of volatility. If you would invest 3,338 in Match Group on November 5, 2024 and sell it today you would earn a total of 232.00 from holding Match Group or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shutterstock vs. Match Group
Performance |
| Timeline |
| Shutterstock |
| Match Group |
Shutterstock and Match Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shutterstock and Match
The main advantage of trading using opposite Shutterstock and Match positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shutterstock position performs unexpectedly, Match 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 Match will offset losses from the drop in Match's long position.| Shutterstock vs. Yelp Inc | Shutterstock vs. Match Group | Shutterstock vs. Snap Inc | Shutterstock vs. Onfolio 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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