Correlation Between Western Copper and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Western Copper 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 Western Copper and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Copper and and Getty Realty, you can compare the effects of market volatilities on Western Copper 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 Western Copper with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Copper and Getty Realty.
Diversification Opportunities for Western Copper and Getty Realty
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Getty is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Western Copper and and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Western Copper 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 Western Copper and 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 Western Copper i.e., Western Copper and Getty Realty go up and down completely randomly.
Pair Corralation between Western Copper and Getty Realty
Considering the 90-day investment horizon Western Copper and is expected to under-perform the Getty Realty. In addition to that, Western Copper is 2.4 times more volatile than Getty Realty. It trades about -0.02 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.01 per unit of volatility. If you would invest 3,108 in Getty Realty on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Getty Realty or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Copper and vs. Getty Realty
Performance |
| Timeline |
| Western Copper |
| Getty Realty |
Western Copper and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Copper and Getty Realty
The main advantage of trading using opposite Western Copper and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Copper 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.| Western Copper vs. Fury Gold Mines | Western Copper vs. EMX Royalty Corp | Western Copper vs. Nevada King Gold | Western Copper vs. Aftermath Silver |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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