Correlation Between Getty Realty and Gap,
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Gap, 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 Gap, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and The Gap,, you can compare the effects of market volatilities on Getty Realty and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Gap,.
Diversification Opportunities for Getty Realty and Gap,
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Getty and Gap, is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Getty Realty i.e., Getty Realty and Gap, go up and down completely randomly.
Pair Corralation between Getty Realty and Gap,
Considering the 90-day investment horizon Getty Realty is expected to generate 69.64 times less return on investment than Gap,. But when comparing it to its historical volatility, Getty Realty is 3.34 times less risky than Gap,. It trades about 0.01 of its potential returns per unit of risk. The Gap, is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,174 in The Gap, on August 27, 2024 and sell it today you would earn a total of 313.00 from holding The Gap, or generate 14.4% 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. The Gap,
Performance |
| Timeline |
| Getty Realty |
| Gap, |
Getty Realty and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Gap,
The main advantage of trading using opposite Getty Realty and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s long position.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
| Gap, vs. RBC Bearings Incorporated | Gap, vs. Nike Inc | Gap, vs. Postal Realty Trust | Gap, vs. Tower One Wireless |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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