Correlation Between Realty Income and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Realty Income 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 Realty Income and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and Getty Realty, you can compare the effects of market volatilities on Realty Income 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 Realty Income with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and Getty Realty.
Diversification Opportunities for Realty Income and Getty Realty
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Realty and Getty is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Realty Income 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 Realty Income 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 Realty Income i.e., Realty Income and Getty Realty go up and down completely randomly.
Pair Corralation between Realty Income and Getty Realty
Taking into account the 90-day investment horizon Realty Income is expected to under-perform the Getty Realty. In addition to that, Realty Income is 1.04 times more volatile than Getty Realty. It trades about -0.25 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.05 per unit of volatility. If you would invest 3,252 in Getty Realty on August 28, 2024 and sell it today you would earn a total of 35.00 from holding Getty Realty or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Realty Income vs. Getty Realty
Performance |
| Timeline |
| Realty Income |
| Getty Realty |
Realty Income and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and Getty Realty
The main advantage of trading using opposite Realty Income and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income 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.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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