Correlation Between Getty Realty and Everest
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Everest 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 Everest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Everest Group, you can compare the effects of market volatilities on Getty Realty and Everest 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 Everest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Everest.
Diversification Opportunities for Getty Realty and Everest
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Getty and Everest is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Everest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everest 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 Everest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everest Group has no effect on the direction of Getty Realty i.e., Getty Realty and Everest go up and down completely randomly.
Pair Corralation between Getty Realty and Everest
Considering the 90-day investment horizon Getty Realty is expected to generate 0.69 times more return on investment than Everest. However, Getty Realty is 1.45 times less risky than Everest. It trades about 0.15 of its potential returns per unit of risk. Everest Group is currently generating about 0.01 per unit of risk. If you would invest 2,648 in Getty Realty on September 1, 2024 and sell it today you would earn a total of 640.00 from holding Getty Realty or generate 24.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Everest Group
Performance |
| Timeline |
| Getty Realty |
| Everest Group |
Getty Realty and Everest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Everest
The main advantage of trading using opposite Getty Realty and Everest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Everest 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 Everest will offset losses from the drop in Everest's long position.| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty |
| Everest vs. Eldorado Gold Corp | Everest vs. Supercom | Everest vs. Keurig Dr Pepper | Everest vs. Compania Cervecerias Unidas |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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