Correlation Between Getty Realty and Radcom
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Radcom 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 Radcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Radcom, you can compare the effects of market volatilities on Getty Realty and Radcom 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 Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Radcom.
Diversification Opportunities for Getty Realty and Radcom
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and Radcom is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Getty Realty i.e., Getty Realty and Radcom go up and down completely randomly.
Pair Corralation between Getty Realty and Radcom
Considering the 90-day investment horizon Getty Realty is expected to generate 11.06 times less return on investment than Radcom. But when comparing it to its historical volatility, Getty Realty is 2.31 times less risky than Radcom. It trades about 0.01 of its potential returns per unit of risk. Radcom is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Radcom on December 4, 2024 and sell it today you would earn a total of 157.50 from holding Radcom or generate 16.37% 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. Radcom
Performance |
| Timeline |
| Getty Realty |
| Radcom |
Getty Realty and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Radcom
The main advantage of trading using opposite Getty Realty and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom'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 |
| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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