Correlation Between Grupo Simec and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Grupo Simec 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 Grupo Simec and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Simec SAB and Getty Realty, you can compare the effects of market volatilities on Grupo Simec 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 Grupo Simec with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Getty Realty.
Diversification Opportunities for Grupo Simec and Getty Realty
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Getty is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Grupo Simec 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 Grupo Simec SAB 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 Grupo Simec i.e., Grupo Simec and Getty Realty go up and down completely randomly.
Pair Corralation between Grupo Simec and Getty Realty
Considering the 90-day investment horizon Grupo Simec is expected to generate 1.24 times less return on investment than Getty Realty. In addition to that, Grupo Simec is 1.9 times more volatile than Getty Realty. It trades about 0.08 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.19 per unit of volatility. If you would invest 3,139 in Getty Realty on September 2, 2024 and sell it today you would earn a total of 149.00 from holding Getty Realty or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Simec SAB vs. Getty Realty
Performance |
| Timeline |
| Grupo Simec SAB |
| Getty Realty |
Grupo Simec and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Getty Realty
The main advantage of trading using opposite Grupo Simec and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec 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.| Grupo Simec vs. Synalloy | Grupo Simec vs. Mesabi Trust | Grupo Simec vs. Algoma Steel Group | Grupo Simec vs. Olympic Steel |
| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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