Correlation Between Getty Realty and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Getty Realty and NYSE Composite 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 NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and NYSE Composite, you can compare the effects of market volatilities on Getty Realty and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and NYSE Composite.
Diversification Opportunities for Getty Realty and NYSE Composite
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getty and NYSE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Getty Realty i.e., Getty Realty and NYSE Composite go up and down completely randomly.
Pair Corralation between Getty Realty and NYSE Composite
Considering the 90-day investment horizon Getty Realty is expected to generate 1.83 times more return on investment than NYSE Composite. However, Getty Realty is 1.83 times more volatile than NYSE Composite. It trades about 0.15 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.27 per unit of risk. If you would invest 3,210 in Getty Realty on August 30, 2024 and sell it today you would earn a total of 121.00 from holding Getty Realty or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. NYSE Composite
Performance |
| Timeline |
Getty Realty and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Getty Realty
Pair trading matchups for Getty Realty
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Getty Realty and NYSE Composite
The main advantage of trading using opposite Getty Realty and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite'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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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