Correlation Between BCE and Getty Realty
Can any of the company-specific risk be diversified away by investing in both BCE and Getty Realty 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 BCE and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Getty Realty, you can compare the effects of market volatilities on BCE and Getty Realty 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 BCE with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Getty Realty.
Diversification Opportunities for BCE and Getty Realty
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BCE and Getty is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and BCE 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 BCE Inc are associated (or correlated) with Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of BCE i.e., BCE and Getty Realty go up and down completely randomly.
Pair Corralation between BCE and Getty Realty
Considering the 90-day investment horizon BCE Inc is expected to under-perform the Getty Realty. But the stock apears to be less risky and, when comparing its historical volatility, BCE Inc is 1.07 times less risky than Getty Realty. The stock trades about -0.33 of its potential returns per unit of risk. The Getty Realty is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,145 in Getty Realty on September 3, 2024 and sell it today you would earn a total of 143.00 from holding Getty Realty or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCE Inc vs. Getty Realty
Performance |
| Timeline |
| BCE Inc |
| Getty Realty |
BCE and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Getty Realty
The main advantage of trading using opposite BCE and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Getty Realty 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 Realty will offset losses from the drop in Getty Realty's long position.The idea behind BCE Inc and Getty Realty 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.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |