Correlation Between Getty Realty and Agree Realty
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Agree 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 Getty Realty and Agree Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Agree Realty, you can compare the effects of market volatilities on Getty Realty and Agree 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 Getty Realty with a short position of Agree Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Agree Realty.
Diversification Opportunities for Getty Realty and Agree Realty
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getty and Agree is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Agree Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agree Realty and Getty Realty 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 Getty Realty are associated (or correlated) with Agree Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agree Realty has no effect on the direction of Getty Realty i.e., Getty Realty and Agree Realty go up and down completely randomly.
Pair Corralation between Getty Realty and Agree Realty
Considering the 90-day investment horizon Getty Realty is expected to under-perform the Agree Realty. In addition to that, Getty Realty is 1.02 times more volatile than Agree Realty. It trades about -0.26 of its total potential returns per unit of risk. Agree Realty is currently generating about -0.08 per unit of volatility. If you would invest 7,500 in Agree Realty on January 11, 2025 and sell it today you would lose (205.00) from holding Agree Realty or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Getty Realty vs. Agree Realty
Performance |
| Timeline |
| Getty Realty |
| Agree Realty |
Getty Realty and Agree Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Agree Realty
The main advantage of trading using opposite Getty Realty and Agree Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Agree 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 Agree Realty will offset losses from the drop in Agree Realty's long position.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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