Correlation Between Getty Realty and Akebono Brake
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Akebono Brake 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 Akebono Brake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Akebono Brake Industry, you can compare the effects of market volatilities on Getty Realty and Akebono Brake 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 Akebono Brake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Akebono Brake.
Diversification Opportunities for Getty Realty and Akebono Brake
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Akebono is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Akebono Brake Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akebono Brake Industry 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 Akebono Brake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akebono Brake Industry has no effect on the direction of Getty Realty i.e., Getty Realty and Akebono Brake go up and down completely randomly.
Pair Corralation between Getty Realty and Akebono Brake
If you would invest 3,227 in Getty Realty on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Getty Realty or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Akebono Brake Industry
Performance |
| Timeline |
| Getty Realty |
| Akebono Brake Industry |
Getty Realty and Akebono Brake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Akebono Brake
The main advantage of trading using opposite Getty Realty and Akebono Brake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Akebono Brake 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 Akebono Brake will offset losses from the drop in Akebono Brake'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 |
| Akebono Brake vs. Figs Inc | Akebono Brake vs. Integral Ad Science | Akebono Brake vs. The Gap, | Akebono Brake vs. NETGEAR |
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 Stocks Directory module to find actively traded stocks across global markets.
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