Correlation Between Getty Realty and Urban Edge
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Urban Edge 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 Urban Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Urban Edge Properties, you can compare the effects of market volatilities on Getty Realty and Urban Edge 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 Urban Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Urban Edge.
Diversification Opportunities for Getty Realty and Urban Edge
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Getty and Urban is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Urban Edge Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Edge Properties 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 Urban Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Edge Properties has no effect on the direction of Getty Realty i.e., Getty Realty and Urban Edge go up and down completely randomly.
Pair Corralation between Getty Realty and Urban Edge
Considering the 90-day investment horizon Getty Realty is expected to generate 17.18 times less return on investment than Urban Edge. But when comparing it to its historical volatility, Getty Realty is 1.07 times less risky than Urban Edge. It trades about 0.01 of its potential returns per unit of risk. Urban Edge Properties is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,216 in Urban Edge Properties on August 27, 2024 and sell it today you would earn a total of 79.00 from holding Urban Edge Properties or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Realty vs. Urban Edge Properties
Performance |
| Timeline |
| Getty Realty |
| Urban Edge Properties |
Getty Realty and Urban Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Realty and Urban Edge
The main advantage of trading using opposite Getty Realty and Urban Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Urban Edge 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 Urban Edge will offset losses from the drop in Urban Edge'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 |
| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |