Correlation Between Bill and Getty Realty

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

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

Diversification Opportunities for Bill and Getty Realty

-0.27

Correlation Coefficient

Bill  Getty Realty

Very good diversification

The 3 months correlation between Bill and Getty is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Bill 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 Bill Com Holdings 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 Bill i.e., Bill and Getty Realty go up and down completely randomly.

Pair Corralation between Bill and Getty Realty

Given the investment horizon of 90 days Bill Com Holdings is expected to under-perform the Getty Realty. In addition to that, Bill is 4.54 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 0.05 per unit of volatility. If you would invest  2,981  in Getty Realty on December 27, 2024 and sell it today you would earn a total of  99.00  from holding Getty Realty or generate 3.32% return on investment over 90 days.

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

Bill Com Holdings  vs.  Getty Realty

Bill Com Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bill Com Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Getty Realty

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Getty Realty are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Bill and Getty Realty

The main advantage of trading using opposite Bill and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bill 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 Bill Com Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.