Correlation Between ALLSTATE and Getty Images

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

By analyzing existing cross correlation between ALLSTATE P 328 and Getty Images Holdings, you can compare the effects of market volatilities on ALLSTATE 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 ALLSTATE with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALLSTATE and Getty Images.

Diversification Opportunities for ALLSTATE and Getty Images

-0.13

Correlation Coefficient

ALLSTATE  Getty Images

Good diversification

The 3 months correlation between ALLSTATE and Getty is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ALLSTATE P 328 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 ALLSTATE 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 ALLSTATE P 328 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 ALLSTATE i.e., ALLSTATE and Getty Images go up and down completely randomly.

Pair Corralation between ALLSTATE and Getty Images

Assuming the 90 days trading horizon ALLSTATE P 328 is expected to under-perform the Getty Images. But the bond apears to be less risky and, when comparing its historical volatility, ALLSTATE P 328 is 9.24 times less risky than Getty Images. The bond trades about -0.01 of its potential returns per unit of risk. The Getty Images Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. 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

ALLSTATE P 328  vs.  Getty Images Holdings

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.

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.

Pair Trading with ALLSTATE and Getty Images

The main advantage of trading using opposite ALLSTATE and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALLSTATE 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 ALLSTATE P 328 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 Stocks Directory module to find actively traded stocks across global markets.