Correlation Between Getty Realty and Rivian Automotive
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Rivian Automotive 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 Rivian Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Rivian Automotive, you can compare the effects of market volatilities on Getty Realty and Rivian Automotive 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 Rivian Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Rivian Automotive.
Diversification Opportunities for Getty Realty and Rivian Automotive
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getty and Rivian is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Rivian Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rivian Automotive 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 Rivian Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rivian Automotive has no effect on the direction of Getty Realty i.e., Getty Realty and Rivian Automotive go up and down completely randomly.
Pair Corralation between Getty Realty and Rivian Automotive
Considering the 90-day investment horizon Getty Realty is expected to generate 0.27 times more return on investment than Rivian Automotive. However, Getty Realty is 3.74 times less risky than Rivian Automotive. It trades about 0.12 of its potential returns per unit of risk. Rivian Automotive is currently generating about 0.01 per unit of risk. If you would invest 2,511 in Getty Realty on August 27, 2024 and sell it today you would earn a total of 744.00 from holding Getty Realty or generate 29.63% 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. Rivian Automotive
Performance |
| Timeline |
| Getty Realty |
| Rivian Automotive |
Getty Realty and Rivian Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Rivian Automotive
The main advantage of trading using opposite Getty Realty and Rivian Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Rivian Automotive 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 Rivian Automotive will offset losses from the drop in Rivian Automotive'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 |
| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Xpeng Inc | Rivian Automotive vs. Mullen Automotive | Rivian Automotive vs. Tesla Inc |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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