Correlation Between Rithm Property and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Rithm Property 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 Rithm Property and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and Getty Realty, you can compare the effects of market volatilities on Rithm Property 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 Rithm Property with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Getty Realty.
Diversification Opportunities for Rithm Property and Getty Realty
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rithm and Getty is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Rithm Property 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 Rithm Property Trust 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 Rithm Property i.e., Rithm Property and Getty Realty go up and down completely randomly.
Pair Corralation between Rithm Property and Getty Realty
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Getty Realty. In addition to that, Rithm Property is 1.92 times more volatile than Getty Realty. It trades about -0.15 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 3,195 in Getty Realty on September 17, 2024 and sell it today you would earn a total of 11.00 from holding Getty Realty or generate 0.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Rithm Property Trust vs. Getty Realty
Performance |
Timeline |
Rithm Property Trust |
Getty Realty |
Rithm Property and Getty Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rithm Property and Getty Realty
The main advantage of trading using opposite Rithm Property and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property 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.Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
Getty Realty vs. Site Centers Corp | Getty Realty vs. CBL Associates Properties | Getty Realty vs. Acadia Realty Trust | Getty Realty vs. Rithm Property Trust |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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