Correlation Between Getty Realty and National Retail
Can any of the company-specific risk be diversified away by investing in both Getty Realty and National Retail 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 National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and National Retail Properties, you can compare the effects of market volatilities on Getty Realty and National Retail 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 National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and National Retail.
Diversification Opportunities for Getty Realty and National Retail
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and National is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop 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 National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Getty Realty i.e., Getty Realty and National Retail go up and down completely randomly.
Pair Corralation between Getty Realty and National Retail
Considering the 90-day investment horizon Getty Realty is expected to generate 0.69 times more return on investment than National Retail. However, Getty Realty is 1.44 times less risky than National Retail. It trades about 0.04 of its potential returns per unit of risk. National Retail Properties is currently generating about -0.23 per unit of risk. If you would invest 3,226 in Getty Realty on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Getty Realty or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Getty Realty vs. National Retail Properties
Performance |
| Timeline |
| Getty Realty |
| National Retail Prop |
Getty Realty and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and National Retail
The main advantage of trading using opposite Getty Realty and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail'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 |
| National Retail vs. Federal Realty Investment | National Retail vs. Agree Realty | National Retail vs. Tanger Factory Outlet | National Retail vs. Netstreit Corp |
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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