Correlation Between Getty Realty and Binah Capital

Can any of the company-specific risk be diversified away by investing in both Getty Realty and Binah Capital 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 Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Getty Realty and Binah Capital Group,, you can compare the effects of market volatilities on Getty Realty and Binah Capital 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 Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and Binah Capital.

Diversification Opportunities for Getty Realty and Binah Capital

-0.13

Correlation Coefficient

Getty Realty  Binah Capital

Good diversification

The 3 months correlation between Getty and Binah is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, 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 Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Getty Realty i.e., Getty Realty and Binah Capital go up and down completely randomly.

Pair Corralation between Getty Realty and Binah Capital

Considering the 90-day investment horizon Getty Realty is expected to under-perform the Binah Capital. But the stock apears to be less risky and, when comparing its historical volatility, Getty Realty is 20.93 times less risky than Binah Capital. The stock trades about -0.04 of its potential returns per unit of risk. The Binah Capital Group, is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3.60  in Binah Capital Group, on September 27, 2024 and sell it today you would earn a total of  2.08  from holding Binah Capital Group, or generate 57.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	61.9%
Values	Daily Returns

Getty Realty  vs.  Binah Capital Group,

Getty Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getty Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Getty Realty is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Binah Capital Group,

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Binah Capital Group, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Binah Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Getty Realty and Binah Capital

The main advantage of trading using opposite Getty Realty and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, Binah Capital 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 Binah Capital will offset losses from the drop in Binah Capital's long position.

The idea behind Getty Realty and Binah Capital Group, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.