Correlation Between Sensient Technologies and Getty
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By analyzing existing cross correlation between Sensient Technologies and Getty Images 975, you can compare the effects of market volatilities on Sensient Technologies 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 Sensient Technologies with a short position of Getty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and Getty.
Diversification Opportunities for Sensient Technologies and Getty
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sensient and Getty is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies i.e., Sensient Technologies and Getty go up and down completely randomly.
Pair Corralation between Sensient Technologies and Getty
Considering the 90-day investment horizon Sensient Technologies is expected to generate 8.12 times more return on investment than Getty. However, Sensient Technologies is 8.12 times more volatile than Getty Images 975. It trades about 0.04 of its potential returns per unit of risk. Getty Images 975 is currently generating about 0.09 per unit of risk. If you would invest 7,514 in Sensient Technologies on September 2, 2024 and sell it today you would earn a total of 250.00 from holding Sensient Technologies or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.19% |
| Values | Daily Returns |
Sensient Technologies vs. Getty Images 975
Performance |
| Timeline |
| Sensient Technologies |
| Getty Images 975 |
Sensient Technologies and Getty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensient Technologies and Getty
The main advantage of trading using opposite Sensient Technologies and Getty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies 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.| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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