Correlation Between Getty Realty and Alaska Air
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Alaska Air 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 Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Alaska Air Group, you can compare the effects of market volatilities on Getty Realty and Alaska Air 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 Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Alaska Air.
Diversification Opportunities for Getty Realty and Alaska Air
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getty and Alaska is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group 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 Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Getty Realty i.e., Getty Realty and Alaska Air go up and down completely randomly.
Pair Corralation between Getty Realty and Alaska Air
Considering the 90-day investment horizon Getty Realty is expected to generate 3.28 times less return on investment than Alaska Air. But when comparing it to its historical volatility, Getty Realty is 1.77 times less risky than Alaska Air. It trades about 0.01 of its potential returns per unit of risk. Alaska Air Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,865 in Alaska Air Group on August 31, 2024 and sell it today you would earn a total of 395.00 from holding Alaska Air Group or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Alaska Air Group
Performance |
| Timeline |
| Getty Realty |
| Alaska Air Group |
Getty Realty and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Alaska Air
The main advantage of trading using opposite Getty Realty and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air'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 |
| Alaska Air vs. JetBlue Airways Corp | Alaska Air vs. Allegiant Travel | Alaska Air vs. SkyWest | Alaska Air vs. Air Transport Services |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |