Correlation Between Titan International and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Titan International 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 Titan International and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan International and Getty Realty, you can compare the effects of market volatilities on Titan International 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 Titan International with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan International and Getty Realty.
Diversification Opportunities for Titan International and Getty Realty
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Titan and Getty is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Titan International and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Titan International 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 Titan International 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 Titan International i.e., Titan International and Getty Realty go up and down completely randomly.
Pair Corralation between Titan International and Getty Realty
Considering the 90-day investment horizon Titan International is expected to generate 3.15 times more return on investment than Getty Realty. However, Titan International is 3.15 times more volatile than Getty Realty. It trades about 0.11 of its potential returns per unit of risk. Getty Realty is currently generating about 0.19 per unit of risk. If you would invest 679.00 in Titan International on September 2, 2024 and sell it today you would earn a total of 53.00 from holding Titan International or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan International vs. Getty Realty
Performance |
| Timeline |
| Titan International |
| Getty Realty |
Titan International and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan International and Getty Realty
The main advantage of trading using opposite Titan International and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International 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.| Titan International vs. Shyft Group | Titan International vs. Manitowoc | Titan International vs. Oshkosh | Titan International vs. Terex |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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