Correlation Between CTO Realty and City Office
Can any of the company-specific risk be diversified away by investing in both CTO Realty and City Office 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 CTO Realty and City Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTO Realty Growth and City Office REIT, you can compare the effects of market volatilities on CTO Realty and City Office 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 CTO Realty with a short position of City Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and City Office.
Diversification Opportunities for CTO Realty and City Office
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTO and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and City Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Office REIT and CTO 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 CTO Realty Growth are associated (or correlated) with City Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Office REIT has no effect on the direction of CTO Realty i.e., CTO Realty and City Office go up and down completely randomly.
Pair Corralation between CTO Realty and City Office
If you would invest (100.00) in CTO Realty Growth on August 30, 2024 and sell it today you would earn a total of 100.00 from holding CTO Realty Growth or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CTO Realty Growth vs. City Office REIT
Performance |
| Timeline |
| CTO Realty Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| City Office REIT |
CTO Realty and City Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and City Office
The main advantage of trading using opposite CTO Realty and City Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, City Office 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 City Office will offset losses from the drop in City Office's long position.| CTO Realty vs. City Office REIT | CTO Realty vs. Armada Hoffler Properties | CTO Realty vs. Digital Realty Trust |
| City Office vs. Vornado Realty Trust | City Office vs. Vornado Realty Trust | City Office vs. SL Green Realty | City Office vs. Hudson Pacific Properties |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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