Correlation Between Greentown Management and Getty Realty

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

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

Diversification Opportunities for Greentown Management and Getty Realty

0.0

Correlation Coefficient

Greentown Management  Getty Realty

Pay attention - limited upside

The 3 months correlation between Greentown and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greentown Management Holdings and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Greentown Management 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 Greentown Management 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 Greentown Management i.e., Greentown Management and Getty Realty go up and down completely randomly.

Pair Corralation between Greentown Management and Getty Realty

If you would invest  2,993  in Getty Realty on December 22, 2024 and sell it today you would earn a total of  60.00  from holding Getty Realty or generate 2.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Greentown Management Holdings  vs.  Getty Realty

Greentown Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greentown Management Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Greentown Management is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Getty Realty

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Getty Realty are ranked lower than 2 (%) 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 Greentown Management and Getty Realty

The main advantage of trading using opposite Greentown Management and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greentown Management 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 Greentown Management 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.