Correlation Between CapitaLand Integrated and Getty Realty
Can any of the company-specific risk be diversified away by investing in both CapitaLand Integrated 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 CapitaLand Integrated and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Integrated Commercial and Getty Realty, you can compare the effects of market volatilities on CapitaLand Integrated 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 CapitaLand Integrated with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Integrated and Getty Realty.
Diversification Opportunities for CapitaLand Integrated and Getty Realty
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CapitaLand and Getty is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Integrated Commerci and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and CapitaLand Integrated 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 CapitaLand Integrated Commercial 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 CapitaLand Integrated i.e., CapitaLand Integrated and Getty Realty go up and down completely randomly.
Pair Corralation between CapitaLand Integrated and Getty Realty
Assuming the 90 days horizon CapitaLand Integrated Commercial is expected to under-perform the Getty Realty. In addition to that, CapitaLand Integrated is 2.46 times more volatile than Getty Realty. It trades about -0.21 of its total potential returns per unit of risk. Getty Realty is currently generating about -0.3 per unit of volatility. If you would invest 3,182 in Getty Realty on October 9, 2024 and sell it today you would lose (218.00) from holding Getty Realty or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Integrated Commerci vs. Getty Realty
Performance |
| Timeline |
| CapitaLand Integrated |
| Getty Realty |
CapitaLand Integrated and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Integrated and Getty Realty
The main advantage of trading using opposite CapitaLand Integrated and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Integrated 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.| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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