Correlation Between Getty Images and ALLSTATE

Can any of the company-specific risk be diversified away by investing in both Getty Images and ALLSTATE 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 ALLSTATE 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 ALLSTATE P 328, you can compare the effects of market volatilities on Getty Images and ALLSTATE 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 ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and ALLSTATE.

Diversification Opportunities for Getty Images and ALLSTATE

-0.13

Correlation Coefficient

Getty Images  ALLSTATE

Good diversification

The 3 months correlation between Getty and ALLSTATE is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and ALLSTATE P 328 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 328 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 ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 328 has no effect on the direction of Getty Images i.e., Getty Images and ALLSTATE go up and down completely randomly.

Pair Corralation between Getty Images and ALLSTATE

Given the investment horizon of 90 days Getty Images Holdings is expected to generate 9.24 times more return on investment than ALLSTATE. However, Getty Images is 9.24 times more volatile than ALLSTATE P 328. It trades about 0.02 of its potential returns per unit of risk. ALLSTATE P 328 is currently generating about -0.01 per unit of risk. If you would invest  224.00  in Getty Images Holdings on December 24, 2024 and sell it today you would lose (5.00) from holding Getty Images Holdings or give up 2.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.67%
Values	Daily Returns

Getty Images Holdings  vs.  ALLSTATE P 328

Getty Images Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Getty Images Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Getty Images may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ALLSTATE P 328

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALLSTATE P 328 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ALLSTATE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Getty Images and ALLSTATE

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

The idea behind Getty Images Holdings and ALLSTATE P 328 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.