Correlation Between Getty Realty and TWFG,

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

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

Diversification Opportunities for Getty Realty and TWFG,

0.59

Correlation Coefficient

Getty Realty  TWFG,

Very weak diversification

The 3 months correlation between Getty and TWFG, is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and TWFG, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TWFG, Class A 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 TWFG,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TWFG, Class A has no effect on the direction of Getty Realty i.e., Getty Realty and TWFG, go up and down completely randomly.

Pair Corralation between Getty Realty and TWFG,

Considering the 90-day investment horizon Getty Realty is expected to under-perform the TWFG,. But the stock apears to be less risky and, when comparing its historical volatility, Getty Realty is 2.6 times less risky than TWFG,. The stock trades about -0.06 of its potential returns per unit of risk. The TWFG, Class A is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,790  in TWFG, Class A on September 22, 2024 and sell it today you would earn a total of  133.00  from holding TWFG, Class A or generate 4.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Getty Realty  vs.  TWFG, Class A

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 current stock price disturbance, may contribute to short-term losses for the investors.

TWFG, Class A

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TWFG, Class A are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, TWFG, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Getty Realty and TWFG,

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

The idea behind Getty Realty and TWFG, Class A 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.