Correlation Between Apartment Investment and CTO Realty
Can any of the company-specific risk be diversified away by investing in both Apartment Investment and CTO 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 Apartment Investment and CTO Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apartment Investment and and CTO Realty Growth, you can compare the effects of market volatilities on Apartment Investment and CTO 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 Apartment Investment with a short position of CTO Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apartment Investment and CTO Realty.
Diversification Opportunities for Apartment Investment and CTO Realty
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apartment and CTO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apartment Investment and and CTO Realty Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTO Realty Growth and Apartment Investment 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 Apartment Investment and are associated (or correlated) with CTO Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTO Realty Growth has no effect on the direction of Apartment Investment i.e., Apartment Investment and CTO Realty go up and down completely randomly.
Pair Corralation between Apartment Investment and CTO Realty
Considering the 90-day investment horizon Apartment Investment and is expected to generate 0.99 times more return on investment than CTO Realty. However, Apartment Investment and is 1.01 times less risky than CTO Realty. It trades about 0.1 of its potential returns per unit of risk. CTO Realty Growth is currently generating about 0.06 per unit of risk. If you would invest 855.00 in Apartment Investment and on August 23, 2024 and sell it today you would earn a total of 23.00 from holding Apartment Investment and or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apartment Investment and vs. CTO Realty Growth
Performance |
| Timeline |
| Apartment Investment and |
| CTO Realty Growth |
Apartment Investment and CTO Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apartment Investment and CTO Realty
The main advantage of trading using opposite Apartment Investment and CTO Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apartment Investment position performs unexpectedly, CTO 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 CTO Realty will offset losses from the drop in CTO Realty's long position.| Apartment Investment vs. Nexpoint Residential Trust | Apartment Investment vs. Centerspace | Apartment Investment vs. Equity Lifestyle Properties | Apartment Investment vs. Elme Communities |
| CTO Realty vs. Essential Properties Realty | CTO Realty vs. Armada Hflr Pr | CTO Realty vs. Brightspire Capital | CTO Realty vs. Broadstone Net Lease |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |