Correlation Between US Global and Getty Realty
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Getty Realty, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Getty Realty.
Diversification Opportunities for US Global and Getty Realty
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GROW and Getty is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and US Global 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 US Global Investors 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 US Global i.e., US Global and Getty Realty go up and down completely randomly.
Pair Corralation between US Global and Getty Realty
Given the investment horizon of 90 days US Global Investors is expected to generate 1.19 times more return on investment than Getty Realty. However, US Global is 1.19 times more volatile than Getty Realty. It trades about 0.01 of its potential returns per unit of risk. Getty Realty is currently generating about 0.01 per unit of risk. If you would invest 235.00 in US Global Investors on December 4, 2024 and sell it today you would lose (1.00) from holding US Global Investors or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Getty Realty
Performance |
| Timeline |
| US Global Investors |
| Getty Realty |
US Global and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Getty Realty
The main advantage of trading using opposite US Global and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital 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 CEOs Directory module to screen CEOs from public companies around the world.
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