Correlation Between Getty Realty and Sma Alliance
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 3,135 in Getty Realty on September 7, 2024 and sell it today you would earn a total of 76.00 from holding Getty Realty or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Getty Realty vs. Sma Alliance
Performance |
| Timeline |
| Getty Realty |
| Sma Alliance |
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.| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
| Sma Alliance vs. Acco Brands | Sma Alliance vs. RBC Bearings Incorporated | Sma Alliance vs. Toro Co | Sma Alliance vs. Corporacion America Airports |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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