Correlation Between Gentera SAB and Realty Income
Can any of the company-specific risk be diversified away by investing in both Gentera SAB and Realty Income 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 Gentera SAB and Realty Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentera SAB de and Realty Income Corp, you can compare the effects of market volatilities on Gentera SAB and Realty Income 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 Gentera SAB with a short position of Realty Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentera SAB and Realty Income.
Diversification Opportunities for Gentera SAB and Realty Income
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentera and Realty is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gentera SAB de and Realty Income Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realty Income Corp and Gentera SAB 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 Gentera SAB de are associated (or correlated) with Realty Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realty Income Corp has no effect on the direction of Gentera SAB i.e., Gentera SAB and Realty Income go up and down completely randomly.
Pair Corralation between Gentera SAB and Realty Income
Assuming the 90 days horizon Gentera SAB de is expected to generate 5.23 times more return on investment than Realty Income. However, Gentera SAB is 5.23 times more volatile than Realty Income Corp. It trades about 0.21 of its potential returns per unit of risk. Realty Income Corp is currently generating about 0.23 per unit of risk. If you would invest 138.00 in Gentera SAB de on February 10, 2024 and sell it today you would earn a total of 30.00 from holding Gentera SAB de or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gentera SAB de vs. Realty Income Corp
Performance |
| Timeline |
| Gentera SAB de |
| Realty Income Corp |
Gentera SAB and Realty Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentera SAB and Realty Income
The main advantage of trading using opposite Gentera SAB and Realty Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentera SAB position performs unexpectedly, Realty Income 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 Realty Income will offset losses from the drop in Realty Income's long position.| Gentera SAB vs. Microsoft | Gentera SAB vs. Apple Inc | Gentera SAB vs. NVIDIA | Gentera SAB vs. Alphabet Inc Class C |
| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |