Correlation Between Getty Realty and Alpha One
Can any of the company-specific risk be diversified away by investing in both Getty Realty and Alpha One 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 Getty Realty and Alpha One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and Alpha One, you can compare the effects of market volatilities on Getty Realty and Alpha One 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 Getty Realty with a short position of Alpha One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Alpha One.
Diversification Opportunities for Getty Realty and Alpha One
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Getty and Alpha is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Alpha One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha One and Getty Realty 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 Getty Realty are associated (or correlated) with Alpha One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha One has no effect on the direction of Getty Realty i.e., Getty Realty and Alpha One go up and down completely randomly.
Pair Corralation between Getty Realty and Alpha One
Considering the 90-day investment horizon Getty Realty is expected to generate 0.23 times more return on investment than Alpha One. However, Getty Realty is 4.4 times less risky than Alpha One. It trades about -0.05 of its potential returns per unit of risk. Alpha One is currently generating about -0.12 per unit of risk. If you would invest 3,158 in Getty Realty on September 26, 2024 and sell it today you would lose (119.00) from holding Getty Realty or give up 3.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Getty Realty vs. Alpha One
Performance |
Timeline |
Getty Realty |
Alpha One |
Getty Realty and Alpha One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Getty Realty and Alpha One
The main advantage of trading using opposite Getty Realty and Alpha One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Alpha One 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 Alpha One will offset losses from the drop in Alpha One's long position.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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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