Correlation Between Getty Realty and Capital One
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Capital One 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 Capital One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Capital One Financial, you can compare the effects of market volatilities on Getty Realty and Capital One 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 Capital One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Capital One.
Diversification Opportunities for Getty Realty and Capital One
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Capital is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Capital One Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital One Financial 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 Capital One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital One Financial has no effect on the direction of Getty Realty i.e., Getty Realty and Capital One go up and down completely randomly.
Pair Corralation between Getty Realty and Capital One
Considering the 90-day investment horizon Getty Realty is expected to generate 1.24 times more return on investment than Capital One. However, Getty Realty is 1.24 times more volatile than Capital One Financial. It trades about 0.15 of its potential returns per unit of risk. Capital One Financial is currently generating about 0.06 per unit of risk. If you would invest 2,673 in Getty Realty on September 2, 2024 and sell it today you would earn a total of 615.00 from holding Getty Realty or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Capital One Financial
Performance |
| Timeline |
| Getty Realty |
| Capital One Financial |
Getty Realty and Capital One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Capital One
The main advantage of trading using opposite Getty Realty and Capital One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Capital One 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 Capital One will offset losses from the drop in Capital One's long position.| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty |
| Capital One vs. CenterPoint Energy | Capital One vs. SNDL Inc | Capital One vs. WEC Energy Group | Capital One vs. NRG Energy |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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