Correlation Between Getty Realty and Skechers USA
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Skechers USA 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 Skechers USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Skechers USA, you can compare the effects of market volatilities on Getty Realty and Skechers USA 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 Skechers USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Skechers USA.
Diversification Opportunities for Getty Realty and Skechers USA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Getty and Skechers is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Skechers USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skechers USA 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 Skechers USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skechers USA has no effect on the direction of Getty Realty i.e., Getty Realty and Skechers USA go up and down completely randomly.
Pair Corralation between Getty Realty and Skechers USA
Considering the 90-day investment horizon Getty Realty is expected to generate 0.39 times more return on investment than Skechers USA. However, Getty Realty is 2.58 times less risky than Skechers USA. It trades about 0.11 of its potential returns per unit of risk. Skechers USA is currently generating about -0.02 per unit of risk. If you would invest 3,133 in Getty Realty on August 31, 2024 and sell it today you would earn a total of 198.00 from holding Getty Realty or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Skechers USA
Performance |
| Timeline |
| Getty Realty |
| Skechers USA |
Getty Realty and Skechers USA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Skechers USA
The main advantage of trading using opposite Getty Realty and Skechers USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Skechers USA 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 Skechers USA will offset losses from the drop in Skechers USA'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 |
| Skechers USA vs. Crocs Inc | Skechers USA vs. On Holding | Skechers USA vs. Nike Inc | Skechers USA vs. Designer Brands |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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