Correlation Between Getty Realty and Dominos Pizza
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Dominos Pizza 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 Dominos Pizza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Dominos Pizza Group, you can compare the effects of market volatilities on Getty Realty and Dominos Pizza 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 Dominos Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Dominos Pizza.
Diversification Opportunities for Getty Realty and Dominos Pizza
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and Dominos is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Dominos Pizza Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominos Pizza Group 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 Dominos Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominos Pizza Group has no effect on the direction of Getty Realty i.e., Getty Realty and Dominos Pizza go up and down completely randomly.
Pair Corralation between Getty Realty and Dominos Pizza
Considering the 90-day investment horizon Getty Realty is expected to generate 0.7 times more return on investment than Dominos Pizza. However, Getty Realty is 1.43 times less risky than Dominos Pizza. It trades about 0.06 of its potential returns per unit of risk. Dominos Pizza Group is currently generating about -0.08 per unit of risk. If you would invest 2,815 in Getty Realty on September 2, 2024 and sell it today you would earn a total of 473.00 from holding Getty Realty or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.16% |
| Values | Daily Returns |
Getty Realty vs. Dominos Pizza Group
Performance |
| Timeline |
| Getty Realty |
| Dominos Pizza Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Getty Realty and Dominos Pizza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Dominos Pizza
The main advantage of trading using opposite Getty Realty and Dominos Pizza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Dominos Pizza 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 Dominos Pizza will offset losses from the drop in Dominos Pizza's long position.| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty |
| Dominos Pizza vs. East Africa Metals | Dominos Pizza vs. Paiute Oil Mining | Dominos Pizza vs. Simon Property Group | Dominos Pizza vs. Getty Realty |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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