Correlation Between Getty Realty and Catalyst Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Catalyst Pharmaceuticals, you can compare the effects of market volatilities on Getty Realty and Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Catalyst Pharmaceuticals.
Diversification Opportunities for Getty Realty and Catalyst Pharmaceuticals
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getty and Catalyst is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Catalyst Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Pharmaceuticals has no effect on the direction of Getty Realty i.e., Getty Realty and Catalyst Pharmaceuticals go up and down completely randomly.
Pair Corralation between Getty Realty and Catalyst Pharmaceuticals
Considering the 90-day investment horizon Getty Realty is expected to generate 0.47 times more return on investment than Catalyst Pharmaceuticals. However, Getty Realty is 2.12 times less risky than Catalyst Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Catalyst Pharmaceuticals is currently generating about -0.12 per unit of risk. If you would invest 3,197 in Getty Realty on September 13, 2024 and sell it today you would earn a total of 42.50 from holding Getty Realty or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Catalyst Pharmaceuticals
Performance |
| Timeline |
| Getty Realty |
| Catalyst Pharmaceuticals |
Getty Realty and Catalyst Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Catalyst Pharmaceuticals
The main advantage of trading using opposite Getty Realty and Catalyst Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals will offset losses from the drop in Catalyst Pharmaceuticals' long position.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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