Correlation Between Getty Realty and Sma Alliance

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Can any of the company-specific risk be diversified away by investing in both Getty Realty and Sma Alliance 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 Sma Alliance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Sma Alliance, you can compare the effects of market volatilities on Getty Realty and Sma Alliance 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 Sma Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Sma Alliance.

Diversification Opportunities for Getty Realty and Sma Alliance

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Getty and Sma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Sma Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sma Alliance 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 Sma Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sma Alliance has no effect on the direction of Getty Realty i.e., Getty Realty and Sma Alliance go up and down completely randomly.

Pair Corralation between Getty Realty and Sma Alliance

If you would invest  3,151  in Getty Realty on September 6, 2024 and sell it today you would earn a total of  53.00  from holding Getty Realty or generate 1.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Getty Realty  vs.  Sma Alliance

 Performance 
       Timeline  
Getty Realty 

Risk-Adjusted Performance

5 of 100

 
Weak
 
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Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Getty Realty are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Getty Realty is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Sma Alliance 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sma Alliance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sma Alliance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Getty Realty and Sma Alliance Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Getty Realty and Sma Alliance

The main advantage of trading using opposite Getty Realty and Sma Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Sma Alliance 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 Sma Alliance will offset losses from the drop in Sma Alliance's long position.
The idea behind Getty Realty and Sma Alliance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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