Correlation Between Collective Mining and Getty Images

Can any of the company-specific risk be diversified away by investing in both Collective Mining 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 Collective Mining and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Collective Mining and Getty Images Holdings, you can compare the effects of market volatilities on Collective Mining 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 Collective Mining with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collective Mining and Getty Images.

Diversification Opportunities for Collective Mining and Getty Images

-0.46

Correlation Coefficient

Collective Mining  Getty Images

Very good diversification

The 3 months correlation between Collective and Getty is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Collective Mining 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 Collective Mining 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 Collective Mining 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 Collective Mining i.e., Collective Mining and Getty Images go up and down completely randomly.

Pair Corralation between Collective Mining and Getty Images

Considering the 90-day investment horizon Collective Mining is expected to generate 0.74 times more return on investment than Getty Images. However, Collective Mining is 1.36 times less risky than Getty Images. It trades about 0.32 of its potential returns per unit of risk. Getty Images Holdings is currently generating about 0.0 per unit of risk. If you would invest  410.00  in Collective Mining on December 29, 2024 and sell it today you would earn a total of  442.00  from holding Collective Mining or generate 107.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Collective Mining  vs.  Getty Images Holdings

Collective Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Collective Mining are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Collective Mining disclosed solid returns over the last few months and may actually be approaching a breakup point.

Getty Images Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Getty Images Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Getty Images is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Collective Mining and Getty Images

The main advantage of trading using opposite Collective Mining and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collective Mining 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.

The idea behind Collective Mining and Getty Images Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.