Correlation Between Getty Images and Contextlogic

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

Diversification Opportunities for Getty Images and Contextlogic

-0.13

Correlation Coefficient

Getty Images  Contextlogic

Good diversification

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

Pair Corralation between Getty Images and Contextlogic

Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Contextlogic. But the stock apears to be less risky and, when comparing its historical volatility, Getty Images Holdings is 1.11 times less risky than Contextlogic. The stock trades about -0.03 of its potential returns per unit of risk. The Contextlogic is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  752.00  in Contextlogic on May 10, 2025 and sell it today you would lose (13.00) from holding Contextlogic or give up 1.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	47.54%
Values	Daily Returns

Getty Images Holdings  vs.  Contextlogic

Getty Images Holdings

Risk-Adjusted Performance

Weakest

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 weak 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.

Contextlogic

Risk-Adjusted Performance

Weakest

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Contextlogic is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Getty Images and Contextlogic

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

The idea behind Getty Images Holdings and Contextlogic 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.