Correlation Between Getty Realty and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both Getty Realty and BCB Bancorp 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 BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and BCB Bancorp, you can compare the effects of market volatilities on Getty Realty and BCB Bancorp 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 BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and BCB Bancorp.
Diversification Opportunities for Getty Realty and BCB Bancorp
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Getty and BCB is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp 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 BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of Getty Realty i.e., Getty Realty and BCB Bancorp go up and down completely randomly.
Pair Corralation between Getty Realty and BCB Bancorp
Considering the 90-day investment horizon Getty Realty is expected to generate 11.17 times less return on investment than BCB Bancorp. But when comparing it to its historical volatility, Getty Realty is 1.82 times less risky than BCB Bancorp. It trades about 0.05 of its potential returns per unit of risk. BCB Bancorp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,191 in BCB Bancorp on August 28, 2024 and sell it today you would earn a total of 164.00 from holding BCB Bancorp or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. BCB Bancorp
Performance |
| Timeline |
| Getty Realty |
| BCB Bancorp |
Getty Realty and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and BCB Bancorp
The main advantage of trading using opposite Getty Realty and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, BCB Bancorp 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 BCB Bancorp will offset losses from the drop in BCB Bancorp'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 |
| BCB Bancorp vs. Fifth Third Bancorp | BCB Bancorp vs. Zions Bancorporation | BCB Bancorp vs. Huntington Bancshares Incorporated | BCB Bancorp vs. Comerica |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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