Correlation Between Getty Realty and Alumina
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Alumina 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 Alumina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Alumina Limited, you can compare the effects of market volatilities on Getty Realty and Alumina 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 Alumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Alumina.
Diversification Opportunities for Getty Realty and Alumina
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Getty and Alumina is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Alumina Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumina Limited 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 Alumina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumina Limited has no effect on the direction of Getty Realty i.e., Getty Realty and Alumina go up and down completely randomly.
Pair Corralation between Getty Realty and Alumina
If you would invest 3,129 in Getty Realty on September 3, 2024 and sell it today you would earn a total of 159.00 from holding Getty Realty or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.38% |
| Values | Daily Returns |
Getty Realty vs. Alumina Limited
Performance |
| Timeline |
| Getty Realty |
| Alumina Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Getty Realty and Alumina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Alumina
The main advantage of trading using opposite Getty Realty and Alumina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Alumina 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 Alumina will offset losses from the drop in Alumina'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 |
| Alumina vs. Coupang LLC | Alumina vs. Boston Beer | Alumina vs. Asbury Automotive Group | Alumina vs. Getty 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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