Correlation Between Getty Images and ConnectM Technology

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

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

Diversification Opportunities for Getty Images and ConnectM Technology

0.66

Correlation Coefficient

Getty Images  ConnectM Technology

Poor diversification

The 3 months correlation between Getty and ConnectM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and ConnectM Technology Solutions, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConnectM Technology and Getty Images 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 Getty Images Holdings are associated (or correlated) with ConnectM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConnectM Technology has no effect on the direction of Getty Images i.e., Getty Images and ConnectM Technology go up and down completely randomly.

Pair Corralation between Getty Images and ConnectM Technology

Given the investment horizon of 90 days Getty Images Holdings is expected to generate 0.9 times more return on investment than ConnectM Technology. However, Getty Images Holdings is 1.11 times less risky than ConnectM Technology. It trades about 0.0 of its potential returns per unit of risk. ConnectM Technology Solutions, is currently generating about -0.18 per unit of risk. If you would invest  210.00  in Getty Images Holdings on December 29, 2024 and sell it today you would lose (17.00) from holding Getty Images Holdings or give up 8.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Getty Images Holdings  vs.  ConnectM Technology Solutions,

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.

ConnectM Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days ConnectM Technology Solutions, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Getty Images and ConnectM Technology

The main advantage of trading using opposite Getty Images and ConnectM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, ConnectM Technology 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 ConnectM Technology will offset losses from the drop in ConnectM Technology's long position.

The idea behind Getty Images Holdings and ConnectM Technology Solutions, 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.