Correlation Between Getty Realty and Babcock Wilcox
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Babcock Wilcox 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 Babcock Wilcox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Babcock Wilcox Enterprises, you can compare the effects of market volatilities on Getty Realty and Babcock Wilcox 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 Babcock Wilcox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Babcock Wilcox.
Diversification Opportunities for Getty Realty and Babcock Wilcox
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and Babcock is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Babcock Wilcox Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Babcock Wilcox Enter 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 Babcock Wilcox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Babcock Wilcox Enter has no effect on the direction of Getty Realty i.e., Getty Realty and Babcock Wilcox go up and down completely randomly.
Pair Corralation between Getty Realty and Babcock Wilcox
Considering the 90-day investment horizon Getty Realty is expected to generate 0.65 times more return on investment than Babcock Wilcox. However, Getty Realty is 1.53 times less risky than Babcock Wilcox. It trades about 0.15 of its potential returns per unit of risk. Babcock Wilcox Enterprises is currently generating about 0.06 per unit of risk. If you would invest 2,585 in Getty Realty on September 14, 2024 and sell it today you would earn a total of 621.00 from holding Getty Realty or generate 24.02% 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. Babcock Wilcox Enterprises
Performance |
| Timeline |
| Getty Realty |
| Babcock Wilcox Enter |
Getty Realty and Babcock Wilcox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Babcock Wilcox
The main advantage of trading using opposite Getty Realty and Babcock Wilcox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Babcock Wilcox 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 Babcock Wilcox will offset losses from the drop in Babcock Wilcox's long position.| Getty Realty vs. Site Centers Corp | Getty Realty vs. CBL Associates Properties | Getty Realty vs. Urban Edge Properties | Getty Realty vs. Acadia Realty Trust |
| Babcock Wilcox vs. Microbot Medical | Babcock Wilcox vs. Cardinal Health | Babcock Wilcox vs. Skechers USA | Babcock Wilcox vs. Xtant Medical Holdings |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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