Correlation Between CBL Associates and Getty Realty
Can any of the company-specific risk be diversified away by investing in both CBL Associates 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 CBL Associates and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Getty Realty, you can compare the effects of market volatilities on CBL Associates 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 CBL Associates with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Getty Realty.
Diversification Opportunities for CBL Associates and Getty Realty
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CBL and Getty is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and CBL Associates 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 CBL Associates Properties 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 CBL Associates i.e., CBL Associates and Getty Realty go up and down completely randomly.
Pair Corralation between CBL Associates and Getty Realty
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 1.36 times more return on investment than Getty Realty. However, CBL Associates is 1.36 times more volatile than Getty Realty. It trades about 0.56 of its potential returns per unit of risk. Getty Realty is currently generating about 0.11 per unit of risk. If you would invest 2,658 in CBL Associates Properties on September 15, 2024 and sell it today you would earn a total of 486.00 from holding CBL Associates Properties or generate 18.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Getty Realty
Performance |
| Timeline |
| CBL Associates Properties |
| Getty Realty |
CBL Associates and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Getty Realty
The main advantage of trading using opposite CBL Associates and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates 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.| CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia Realty Trust |
| Getty Realty vs. Site Centers Corp | Getty Realty vs. CBL Associates Properties | Getty Realty vs. Urban Edge Properties | Getty Realty vs. Acadia Realty Trust |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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