Correlation Between Getty Realty and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both Getty Realty and CapitaLand Integrated 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 CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Realty and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on Getty Realty and CapitaLand Integrated 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 CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and CapitaLand Integrated.
Diversification Opportunities for Getty Realty and CapitaLand Integrated
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Getty and CapitaLand is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated 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 CapitaLand Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Integrated has no effect on the direction of Getty Realty i.e., Getty Realty and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between Getty Realty and CapitaLand Integrated
Considering the 90-day investment horizon Getty Realty is expected to generate 0.24 times more return on investment than CapitaLand Integrated. However, Getty Realty is 4.1 times less risky than CapitaLand Integrated. It trades about 0.05 of its potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about -0.03 per unit of risk. If you would invest 3,130 in Getty Realty on September 10, 2024 and sell it today you would earn a total of 81.00 from holding Getty Realty or generate 2.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Getty Realty vs. CapitaLand Integrated Commerci
Performance |
Timeline |
Getty Realty |
CapitaLand Integrated |
Getty Realty and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Getty Realty and CapitaLand Integrated
The main advantage of trading using opposite Getty Realty and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Realty position performs unexpectedly, CapitaLand Integrated 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 CapitaLand Integrated will offset losses from the drop in CapitaLand Integrated'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 |
CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
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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