Correlation Between Getty Realty and A SPAC
Can any of the company-specific risk be diversified away by investing in both Getty Realty and A SPAC 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 A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and A SPAC II, you can compare the effects of market volatilities on Getty Realty and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and A SPAC.
Diversification Opportunities for Getty Realty and A SPAC
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and ASUUF is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of Getty Realty i.e., Getty Realty and A SPAC go up and down completely randomly.
Pair Corralation between Getty Realty and A SPAC
Considering the 90-day investment horizon Getty Realty is expected to generate 1.88 times more return on investment than A SPAC. However, Getty Realty is 1.88 times more volatile than A SPAC II. It trades about 0.01 of its potential returns per unit of risk. A SPAC II is currently generating about -0.2 per unit of risk. If you would invest 3,206 in Getty Realty on September 14, 2024 and sell it today you would lose (11.50) from holding Getty Realty or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.12% |
| Values | Daily Returns |
Getty Realty vs. A SPAC II
Performance |
| Timeline |
| Getty Realty |
| A SPAC II |
Getty Realty and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and A SPAC
The main advantage of trading using opposite Getty Realty and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC'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 |
| A SPAC vs. Voyager Acquisition Corp | A SPAC vs. YHN Acquisition I | A SPAC vs. CO2 Energy Transition | A SPAC vs. Vine Hill Capital |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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