Correlation Between Getty Realty and Alvotech
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Alvotech 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 Alvotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Alvotech, you can compare the effects of market volatilities on Getty Realty and Alvotech 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 Alvotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Alvotech.
Diversification Opportunities for Getty Realty and Alvotech
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Getty and Alvotech is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Alvotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvotech 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 Alvotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alvotech has no effect on the direction of Getty Realty i.e., Getty Realty and Alvotech go up and down completely randomly.
Pair Corralation between Getty Realty and Alvotech
Considering the 90-day investment horizon Getty Realty is expected to generate 0.59 times more return on investment than Alvotech. However, Getty Realty is 1.69 times less risky than Alvotech. It trades about 0.15 of its potential returns per unit of risk. Alvotech is currently generating about -0.06 per unit of risk. If you would invest 2,673 in Getty Realty on September 2, 2024 and sell it today you would earn a total of 615.00 from holding Getty Realty or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Alvotech
Performance |
| Timeline |
| Getty Realty |
| Alvotech |
Getty Realty and Alvotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Alvotech
The main advantage of trading using opposite Getty Realty and Alvotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Alvotech 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 Alvotech will offset losses from the drop in Alvotech's long position.| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty |
| Alvotech vs. Intracellular Th | Alvotech vs. Catalent | Alvotech vs. Amphastar P | Alvotech vs. Assertio Therapeutics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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