Correlation Between Getty Realty and U Power
Can any of the company-specific risk be diversified away by investing in both Getty Realty and U Power 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 U Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and U Power Limited, you can compare the effects of market volatilities on Getty Realty and U Power 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 U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and U Power.
Diversification Opportunities for Getty Realty and U Power
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getty and UCAR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited 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 U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of Getty Realty i.e., Getty Realty and U Power go up and down completely randomly.
Pair Corralation between Getty Realty and U Power
Considering the 90-day investment horizon Getty Realty is expected to generate 158.05 times less return on investment than U Power. But when comparing it to its historical volatility, Getty Realty is 56.16 times less risky than U Power. It trades about 0.02 of its potential returns per unit of risk. U Power Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in U Power Limited on September 3, 2024 and sell it today you would earn a total of 632.00 from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.63% |
| Values | Daily Returns |
Getty Realty vs. U Power Limited
Performance |
| Timeline |
| Getty Realty |
| U Power Limited |
Getty Realty and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and U Power
The main advantage of trading using opposite Getty Realty and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power'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 |
| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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