Correlation Between Getty Images and ZK International

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

Diversification Opportunities for Getty Images and ZK International

0.07

Correlation Coefficient

Getty Images  ZK International

Significant diversification

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

Pair Corralation between Getty Images and ZK International

Given the investment horizon of 90 days Getty Images is expected to generate 17.69 times less return on investment than ZK International. But when comparing it to its historical volatility, Getty Images Holdings is 1.6 times less risky than ZK International. It trades about 0.01 of its potential returns per unit of risk. ZK International Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  63.00  in ZK International Group on February 17, 2024 and sell it today you would earn a total of  12.00  from holding ZK International Group or generate 19.05% return on investment over 90 days.

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

Getty Images Holdings  vs.  ZK International Group

Getty Images Holdings

Risk-Adjusted Performance

0 of 100

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 latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ZK International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZK International Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Getty Images and ZK International

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

The idea behind Getty Images Holdings and ZK International Group 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.