Correlation Between Thor Industries and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Thor Industries 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 Thor Industries and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thor Industries and Getty Realty, you can compare the effects of market volatilities on Thor Industries 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 Thor Industries with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thor Industries and Getty Realty.
Diversification Opportunities for Thor Industries and Getty Realty
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thor and Getty is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Thor Industries and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Thor Industries 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 Thor Industries 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 Thor Industries i.e., Thor Industries and Getty Realty go up and down completely randomly.
Pair Corralation between Thor Industries and Getty Realty
Considering the 90-day investment horizon Thor Industries is expected to generate 1.69 times more return on investment than Getty Realty. However, Thor Industries is 1.69 times more volatile than Getty Realty. It trades about 0.06 of its potential returns per unit of risk. Getty Realty is currently generating about 0.05 per unit of risk. If you would invest 10,853 in Thor Industries on August 30, 2024 and sell it today you would earn a total of 260.00 from holding Thor Industries or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thor Industries vs. Getty Realty
Performance |
| Timeline |
| Thor Industries |
| Getty Realty |
Thor Industries and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thor Industries and Getty Realty
The main advantage of trading using opposite Thor Industries and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thor Industries 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.| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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