Correlation Between Getty Realty and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Getty Realty and BW Offshore 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 BW Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and BW Offshore Limited, you can compare the effects of market volatilities on Getty Realty and BW Offshore 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 BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and BW Offshore.
Diversification Opportunities for Getty Realty and BW Offshore
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Getty and BWOFY is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and BW Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore 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 BW Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW Offshore Limited has no effect on the direction of Getty Realty i.e., Getty Realty and BW Offshore go up and down completely randomly.
Pair Corralation between Getty Realty and BW Offshore
Considering the 90-day investment horizon Getty Realty is expected to generate 5.02 times less return on investment than BW Offshore. But when comparing it to its historical volatility, Getty Realty is 1.09 times less risky than BW Offshore. It trades about 0.02 of its potential returns per unit of risk. BW Offshore Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 412.00 in BW Offshore Limited on September 12, 2024 and sell it today you would earn a total of 143.00 from holding BW Offshore Limited or generate 34.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Getty Realty vs. BW Offshore Limited
Performance |
| Timeline |
| Getty Realty |
| BW Offshore Limited |
Getty Realty and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and BW Offshore
The main advantage of trading using opposite Getty Realty and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, BW Offshore 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 BW Offshore will offset losses from the drop in BW Offshore'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 |
| BW Offshore vs. Legacy Education | BW Offshore vs. Apple Inc | BW Offshore vs. NVIDIA | BW Offshore vs. Microsoft |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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