Correlation Between Getty Images and Fortress Transp

Can any of the company-specific risk be diversified away by investing in both Getty Images and Fortress Transp 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 Fortress Transp 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 Fortress Transp Infra, you can compare the effects of market volatilities on Getty Images and Fortress Transp 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 Fortress Transp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Fortress Transp.

Diversification Opportunities for Getty Images and Fortress Transp

0.07

Correlation Coefficient

Getty Images  Fortress Transp

Significant diversification

The 3 months correlation between Getty and Fortress is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Fortress Transp Infra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Transp Infra 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 Fortress Transp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Transp Infra has no effect on the direction of Getty Images i.e., Getty Images and Fortress Transp go up and down completely randomly.

Pair Corralation between Getty Images and Fortress Transp

Given the investment horizon of 90 days Getty Images is expected to generate 53.75 times less return on investment than Fortress Transp. But when comparing it to its historical volatility, Getty Images Holdings is 1.34 times less risky than Fortress Transp. It trades about 0.0 of its potential returns per unit of risk. Fortress Transp Infra is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  12,613  in Fortress Transp Infra on December 29, 2024 and sell it today you would lose (1,377) from holding Fortress Transp Infra or give up 10.92% of portfolio value over 90 days.

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

Getty Images Holdings  vs.  Fortress Transp Infra

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.

Fortress Transp Infra

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fortress Transp Infra has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Fortress Transp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Getty Images and Fortress Transp

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

The idea behind Getty Images Holdings and Fortress Transp Infra 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.