Correlation Between Getty Realty and Global Lights
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Global Lights 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 Global Lights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Global Lights Acquisition, you can compare the effects of market volatilities on Getty Realty and Global Lights 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 Global Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Global Lights.
Diversification Opportunities for Getty Realty and Global Lights
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Global is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Global Lights Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Lights Acquisition 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 Global Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Lights Acquisition has no effect on the direction of Getty Realty i.e., Getty Realty and Global Lights go up and down completely randomly.
Pair Corralation between Getty Realty and Global Lights
Considering the 90-day investment horizon Getty Realty is expected to generate 10.24 times more return on investment than Global Lights. However, Getty Realty is 10.24 times more volatile than Global Lights Acquisition. It trades about 0.16 of its potential returns per unit of risk. Global Lights Acquisition is currently generating about 0.34 per unit of risk. If you would invest 2,964 in Getty Realty on November 5, 2024 and sell it today you would earn a total of 128.00 from holding Getty Realty or generate 4.32% 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. Global Lights Acquisition
Performance |
| Timeline |
| Getty Realty |
| Global Lights Acquisition |
Getty Realty and Global Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Global Lights
The main advantage of trading using opposite Getty Realty and Global Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Global Lights 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 Global Lights will offset losses from the drop in Global Lights' long position.| Getty Realty vs. Saul Centers | Getty Realty vs. Urban Edge Properties | Getty Realty vs. Rithm Property Trust | Getty Realty vs. Site Centers Corp |
| Global Lights vs. Mills Music Trust | Global Lights vs. Elite Education Group | Global Lights vs. Deluxe | Global Lights vs. Skillful Craftsman Education |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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