Correlation Between Getty Realty and Arrow Electronics
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Arrow Electronics 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 Arrow Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Arrow Electronics, you can compare the effects of market volatilities on Getty Realty and Arrow Electronics 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 Arrow Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Arrow Electronics.
Diversification Opportunities for Getty Realty and Arrow Electronics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Arrow is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Arrow Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Electronics 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 Arrow Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Electronics has no effect on the direction of Getty Realty i.e., Getty Realty and Arrow Electronics go up and down completely randomly.
Pair Corralation between Getty Realty and Arrow Electronics
Considering the 90-day investment horizon Getty Realty is expected to generate 0.61 times more return on investment than Arrow Electronics. However, Getty Realty is 1.64 times less risky than Arrow Electronics. It trades about 0.17 of its potential returns per unit of risk. Arrow Electronics is currently generating about -0.02 per unit of risk. If you would invest 2,560 in Getty Realty on September 19, 2024 and sell it today you would earn a total of 677.00 from holding Getty Realty or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Arrow Electronics
Performance |
| Timeline |
| Getty Realty |
| Arrow Electronics |
Getty Realty and Arrow Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Arrow Electronics
The main advantage of trading using opposite Getty Realty and Arrow Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Arrow Electronics 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 Arrow Electronics will offset losses from the drop in Arrow Electronics' long position.| Getty Realty vs. Site Centers Corp | Getty Realty vs. CBL Associates Properties | Getty Realty vs. Rithm Property Trust | Getty Realty vs. Retail Opportunity Investments |
| Arrow Electronics vs. Insight Enterprises | Arrow Electronics vs. Synnex | Arrow Electronics vs. Climb Global Solutions | Arrow Electronics vs. ScanSource |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |