Correlation Between WPLAU and Getty Realty

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

By analyzing existing cross correlation between WPLAU 37 15 SEP 26 and Getty Realty, you can compare the effects of market volatilities on WPLAU 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 WPLAU with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of WPLAU and Getty Realty.

Diversification Opportunities for WPLAU and Getty Realty

0.0

Correlation Coefficient

WPLAU  Getty Realty

Pay attention - limited upside

The 3 months correlation between WPLAU and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WPLAU 37 15 SEP 26 and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and WPLAU 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 WPLAU 37 15 SEP 26 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 WPLAU i.e., WPLAU and Getty Realty go up and down completely randomly.

Pair Corralation between WPLAU and Getty Realty

If you would invest  2,675  in Getty Realty on October 3, 2024 and sell it today you would earn a total of  338.00  from holding Getty Realty or generate 12.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.37%
Values	Daily Returns

WPLAU 37 15 SEP 26  vs.  Getty Realty

WPLAU 37 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WPLAU 37 15 SEP 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, WPLAU is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Getty Realty

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with WPLAU and Getty Realty

The main advantage of trading using opposite WPLAU and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WPLAU 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 WPLAU 37 15 SEP 26 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.