Correlation Between National Retail and Getty Realty
Can any of the company-specific risk be diversified away by investing in both National Retail 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 National Retail and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Retail Properties and Getty Realty, you can compare the effects of market volatilities on National Retail 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 National Retail with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Retail and Getty Realty.
Diversification Opportunities for National Retail and Getty Realty
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Getty is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding National Retail Properties and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and National Retail 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 National Retail Properties 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 National Retail i.e., National Retail and Getty Realty go up and down completely randomly.
Pair Corralation between National Retail and Getty Realty
Considering the 90-day investment horizon National Retail Properties is expected to under-perform the Getty Realty. In addition to that, National Retail is 1.44 times more volatile than Getty Realty. It trades about -0.23 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.04 per unit of volatility. If you would invest 3,226 in Getty Realty on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Getty Realty or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Retail Properties vs. Getty Realty
Performance |
| Timeline |
| National Retail Prop |
| Getty Realty |
National Retail and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Retail and Getty Realty
The main advantage of trading using opposite National Retail and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Retail 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.| National Retail vs. Federal Realty Investment | National Retail vs. Agree Realty | National Retail vs. Tanger Factory Outlet | National Retail vs. Netstreit 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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