Correlation Between Gap, and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Gap, 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 Gap, and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Getty Realty, you can compare the effects of market volatilities on Gap, 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 Gap, with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Getty Realty.
Diversification Opportunities for Gap, and Getty Realty
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gap, and Getty is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Gap, 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 The Gap, 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 Gap, i.e., Gap, and Getty Realty go up and down completely randomly.
Pair Corralation between Gap, and Getty Realty
Considering the 90-day investment horizon The Gap, is expected to generate 3.09 times more return on investment than Getty Realty. However, Gap, is 3.09 times more volatile than Getty Realty. It trades about 0.06 of its potential returns per unit of risk. Getty Realty is currently generating about 0.12 per unit of risk. If you would invest 1,856 in The Gap, on August 27, 2024 and sell it today you would earn a total of 631.00 from holding The Gap, or generate 34.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. Getty Realty
Performance |
| Timeline |
| Gap, |
| Getty Realty |
Gap, and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Getty Realty
The main advantage of trading using opposite Gap, and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, 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.| Gap, vs. RBC Bearings Incorporated | Gap, vs. Nike Inc | Gap, vs. Postal Realty Trust | Gap, vs. Tower One Wireless |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |