Correlation Between Getty Realty and Enersys
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Enersys 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 Enersys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Enersys, you can compare the effects of market volatilities on Getty Realty and Enersys 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 Enersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Enersys.
Diversification Opportunities for Getty Realty and Enersys
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Enersys is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys 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 Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Getty Realty i.e., Getty Realty and Enersys go up and down completely randomly.
Pair Corralation between Getty Realty and Enersys
Considering the 90-day investment horizon Getty Realty is expected to generate 0.67 times more return on investment than Enersys. However, Getty Realty is 1.49 times less risky than Enersys. It trades about 0.12 of its potential returns per unit of risk. Enersys is currently generating about 0.03 per unit of risk. If you would invest 2,614 in Getty Realty on September 3, 2024 and sell it today you would earn a total of 674.00 from holding Getty Realty or generate 25.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Enersys
Performance |
| Timeline |
| Getty Realty |
| Enersys |
Getty Realty and Enersys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Enersys
The main advantage of trading using opposite Getty Realty and Enersys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Enersys 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 Enersys will offset losses from the drop in Enersys' long position.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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