Correlation Between Getty Realty and GAMCO Global
Can any of the company-specific risk be diversified away by investing in both Getty Realty and GAMCO Global 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 GAMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and GAMCO Global Gold, you can compare the effects of market volatilities on Getty Realty and GAMCO Global 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 GAMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and GAMCO Global.
Diversification Opportunities for Getty Realty and GAMCO Global
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and GAMCO is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and GAMCO Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Global Gold 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 GAMCO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Global Gold has no effect on the direction of Getty Realty i.e., Getty Realty and GAMCO Global go up and down completely randomly.
Pair Corralation between Getty Realty and GAMCO Global
Considering the 90-day investment horizon Getty Realty is expected to generate 2.36 times more return on investment than GAMCO Global. However, Getty Realty is 2.36 times more volatile than GAMCO Global Gold. It trades about 0.19 of its potential returns per unit of risk. GAMCO Global Gold is currently generating about 0.02 per unit of risk. If you would invest 3,139 in Getty Realty on September 2, 2024 and sell it today you would earn a total of 149.00 from holding Getty Realty or generate 4.75% 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. GAMCO Global Gold
Performance |
| Timeline |
| Getty Realty |
| GAMCO Global Gold |
Getty Realty and GAMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and GAMCO Global
The main advantage of trading using opposite Getty Realty and GAMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, GAMCO Global 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 GAMCO Global will offset losses from the drop in GAMCO Global's long position.| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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