Correlation Between Getty Realty and SOCGEN

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

By analyzing existing cross correlation between Getty Realty and SOCGEN 3 22 JAN 30, you can compare the effects of market volatilities on Getty Realty and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Realty and SOCGEN.

Diversification Opportunities for Getty Realty and SOCGEN

-0.09

Correlation Coefficient

Getty Realty  SOCGEN

Good diversification

The 3 months correlation between Getty and SOCGEN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Getty Realty and SOCGEN 3 22 JAN 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 3 22 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 3 22 has no effect on the direction of Getty Realty i.e., Getty Realty and SOCGEN go up and down completely randomly.

Pair Corralation between Getty Realty and SOCGEN

Considering the 90-day investment horizon Getty Realty is expected to generate 0.81 times more return on investment than SOCGEN. However, Getty Realty is 1.23 times less risky than SOCGEN. It trades about -0.02 of its potential returns per unit of risk. SOCGEN 3 22 JAN 30 is currently generating about -0.15 per unit of risk. If you would invest  3,217  in Getty Realty on December 1, 2024 and sell it today you would lose (77.00) from holding Getty Realty or give up 2.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.33%
Values	Daily Returns

Getty Realty  vs.  SOCGEN 3 22 JAN 30

Getty Realty

Risk-Adjusted Performance

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.

SOCGEN 3 22

Risk-Adjusted Performance

Very Weak

Over the last 90 days SOCGEN 3 22 JAN 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for SOCGEN 3 22 JAN 30 investors.

Pair Trading with Getty Realty and SOCGEN

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

The idea behind Getty Realty and SOCGEN 3 22 JAN 30 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.