Correlation Between Cable One and Getty Images

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Can any of the company-specific risk be diversified away by investing in both Cable One 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 Cable One and Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cable One and Getty Images Holdings, you can compare the effects of market volatilities on Cable One 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 Cable One with a short position of Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cable One and Getty Images.

Diversification Opportunities for Cable One and Getty Images

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Cable and Getty is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cable One 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 Cable One 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 Cable One 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 Cable One i.e., Cable One and Getty Images go up and down completely randomly.

Pair Corralation between Cable One and Getty Images

Given the investment horizon of 90 days Cable One is expected to under-perform the Getty Images. But the stock apears to be less risky and, when comparing its historical volatility, Cable One is 1.17 times less risky than Getty Images. The stock trades about -0.2 of its potential returns per unit of risk. The Getty Images Holdings is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  199.00  in Getty Images Holdings on August 22, 2025 and sell it today you would lose (53.00) from holding Getty Images Holdings or give up 26.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Cable One  vs.  Getty Images Holdings

 Performance 
       Timeline  
Cable One 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cable One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Getty Images Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Cable One and Getty Images Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cable One and Getty Images

The main advantage of trading using opposite Cable One and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cable One 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 Cable One 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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