Correlation Between Getty Images and Zura Bio
Can any of the company-specific risk be diversified away by investing in both Getty Images and Zura Bio 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 Zura Bio 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 Zura Bio Limited, you can compare the effects of market volatilities on Getty Images and Zura Bio 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 Zura Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Zura Bio.
Diversification Opportunities for Getty Images and Zura Bio
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Getty and Zura is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images Holdings and Zura Bio Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zura Bio Limited 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 Zura Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zura Bio Limited has no effect on the direction of Getty Images i.e., Getty Images and Zura Bio go up and down completely randomly.
Pair Corralation between Getty Images and Zura Bio
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Zura Bio. But the stock apears to be less risky and, when comparing its historical volatility, Getty Images Holdings is 1.79 times less risky than Zura Bio. The stock trades about -0.37 of its potential returns per unit of risk. The Zura Bio Limited is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Zura Bio Limited on September 25, 2024 and sell it today you would lose (74.00) from holding Zura Bio Limited or give up 24.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Getty Images Holdings vs. Zura Bio Limited
Performance |
Timeline |
Getty Images Holdings |
Zura Bio Limited |
Getty Images and Zura Bio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Getty Images and Zura Bio
The main advantage of trading using opposite Getty Images and Zura Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images position performs unexpectedly, Zura Bio 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 Zura Bio will offset losses from the drop in Zura Bio's long position.Getty Images vs. Outbrain | Getty Images vs. Perion Network | Getty Images vs. Taboola Ltd Warrant | Getty Images vs. Fiverr International |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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