Correlation Between Shutterstock and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Shutterstock and PropertyGuru 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 PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shutterstock and PropertyGuru Group, you can compare the effects of market volatilities on Shutterstock and PropertyGuru 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 PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shutterstock and PropertyGuru.
Diversification Opportunities for Shutterstock and PropertyGuru
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shutterstock and PropertyGuru is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shutterstock and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru 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 PropertyGuru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PropertyGuru Group has no effect on the direction of Shutterstock i.e., Shutterstock and PropertyGuru go up and down completely randomly.
Pair Corralation between Shutterstock and PropertyGuru
Given the investment horizon of 90 days Shutterstock is expected to generate 26.64 times more return on investment than PropertyGuru. However, Shutterstock is 26.64 times more volatile than PropertyGuru Group. It trades about 0.13 of its potential returns per unit of risk. PropertyGuru Group is currently generating about 0.0 per unit of risk. If you would invest 2,953 in Shutterstock on August 28, 2024 and sell it today you would earn a total of 257.00 from holding Shutterstock or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shutterstock vs. PropertyGuru Group
Performance |
| Timeline |
| Shutterstock |
| PropertyGuru Group |
Shutterstock and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shutterstock and PropertyGuru
The main advantage of trading using opposite Shutterstock and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shutterstock position performs unexpectedly, PropertyGuru 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 PropertyGuru will offset losses from the drop in PropertyGuru's long position.| Shutterstock vs. Yelp Inc | Shutterstock vs. Match Group | Shutterstock vs. Snap Inc | Shutterstock vs. Onfolio Holdings |
| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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