Correlation Between Getty Realty and Amgen
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Amgen 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 Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Amgen Inc, you can compare the effects of market volatilities on Getty Realty and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Amgen.
Diversification Opportunities for Getty Realty and Amgen
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Getty and Amgen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Getty Realty i.e., Getty Realty and Amgen go up and down completely randomly.
Pair Corralation between Getty Realty and Amgen
Considering the 90-day investment horizon Getty Realty is expected to generate 0.77 times more return on investment than Amgen. However, Getty Realty is 1.29 times less risky than Amgen. It trades about 0.15 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.03 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Amgen Inc
Performance |
| Timeline |
| Getty Realty |
| Amgen Inc |
Getty Realty and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Amgen
The main advantage of trading using opposite Getty Realty and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty 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 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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