Correlation Between Getty Realty and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Getty Realty and RCS MediaGroup 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 RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and RCS MediaGroup SpA, you can compare the effects of market volatilities on Getty Realty and RCS MediaGroup 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 RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and RCS MediaGroup.
Diversification Opportunities for Getty Realty and RCS MediaGroup
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Getty and RCS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA 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 RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Getty Realty i.e., Getty Realty and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Getty Realty and RCS MediaGroup
Considering the 90-day investment horizon Getty Realty is expected to generate 1.72 times less return on investment than RCS MediaGroup. But when comparing it to its historical volatility, Getty Realty is 1.09 times less risky than RCS MediaGroup. It trades about 0.05 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 92.00 in RCS MediaGroup SpA on December 1, 2024 and sell it today you would earn a total of 2.00 from holding RCS MediaGroup SpA or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Getty Realty vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Getty Realty |
| RCS MediaGroup SpA |
Getty Realty and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and RCS MediaGroup
The main advantage of trading using opposite Getty Realty and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup'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 |
| RCS MediaGroup vs. Legible | RCS MediaGroup vs. Sylvania Platinum Limited | RCS MediaGroup vs. Thunderbird Entertainment Group | RCS MediaGroup vs. PAX Global Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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