Correlation Between Retail Opportunity and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Retail Opportunity 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 Retail Opportunity and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Opportunity Investments and Getty Realty, you can compare the effects of market volatilities on Retail Opportunity 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 Retail Opportunity with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Opportunity and Getty Realty.
Diversification Opportunities for Retail Opportunity and Getty Realty
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Retail and Getty is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Retail Opportunity Investments and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Retail Opportunity 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 Retail Opportunity Investments 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 Retail Opportunity i.e., Retail Opportunity and Getty Realty go up and down completely randomly.
Pair Corralation between Retail Opportunity and Getty Realty
Given the investment horizon of 90 days Retail Opportunity Investments is expected to generate 1.59 times more return on investment than Getty Realty. However, Retail Opportunity is 1.59 times more volatile than Getty Realty. It trades about 0.04 of its potential returns per unit of risk. Getty Realty is currently generating about 0.03 per unit of risk. If you would invest 1,425 in Retail Opportunity Investments on August 26, 2024 and sell it today you would earn a total of 312.00 from holding Retail Opportunity Investments or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Opportunity Investments vs. Getty Realty
Performance |
| Timeline |
| Retail Opportunity |
| Getty Realty |
Retail Opportunity and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Opportunity and Getty Realty
The main advantage of trading using opposite Retail Opportunity and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Opportunity 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.| Retail Opportunity vs. Kite Realty Group | Retail Opportunity vs. Urban Edge Properties | Retail Opportunity vs. Acadia Realty Trust |
| Getty Realty vs. Site Centers Corp | Getty Realty vs. Inventrust Properties Corp | Getty Realty vs. Retail Opportunity Investments | Getty Realty vs. Netstreit Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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