Correlation Between Lion One and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Lion One and Getty Realty 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 Lion One and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Getty Realty, you can compare the effects of market volatilities on Lion One and Getty Realty 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 Lion One with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Getty Realty.
Diversification Opportunities for Lion One and Getty Realty
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and Getty is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Lion One 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 Lion One Metals are associated (or correlated) with Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of Lion One i.e., Lion One and Getty Realty go up and down completely randomly.
Pair Corralation between Lion One and Getty Realty
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Getty Realty. In addition to that, Lion One is 2.61 times more volatile than Getty Realty. It trades about -0.24 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.17 per unit of volatility. If you would invest 3,191 in Getty Realty on August 31, 2024 and sell it today you would earn a total of 140.00 from holding Getty Realty or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Getty Realty
Performance |
| Timeline |
| Lion One Metals |
| Getty Realty |
Lion One and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Getty Realty
The main advantage of trading using opposite Lion One and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Getty Realty 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 Getty Realty will offset losses from the drop in Getty Realty's long position.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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