Correlation Between Urstadt Biddle and Getty Realty

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

By analyzing existing cross correlation between Urstadt Biddle and Getty Realty, you can compare the effects of market volatilities on Urstadt Biddle 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 Urstadt Biddle with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urstadt Biddle and Getty Realty.

Diversification Opportunities for Urstadt Biddle and Getty Realty

0.48

Correlation Coefficient

Urstadt Biddle  Getty Realty

Very weak diversification

The 3 months correlation between Urstadt and Getty is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Urstadt Biddle 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 Urstadt Biddle 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 Urstadt Biddle i.e., Urstadt Biddle and Getty Realty go up and down completely randomly.

Pair Corralation between Urstadt Biddle and Getty Realty

If you would invest  3,133  in Getty Realty on August 31, 2024 and sell it today you would earn a total of  198.00  from holding Getty Realty or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Urstadt Biddle  vs.  Getty Realty

Urstadt Biddle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Getty Realty

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Getty Realty are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Getty Realty may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Urstadt Biddle and Getty Realty

The main advantage of trading using opposite Urstadt Biddle and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urstadt Biddle 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.

The idea behind Urstadt Biddle and Getty Realty 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.