Correlation Between CTO Realty and FrontView REIT,
Can any of the company-specific risk be diversified away by investing in both CTO Realty and FrontView REIT, 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 FrontView REIT, 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 FrontView REIT,, you can compare the effects of market volatilities on CTO Realty and FrontView REIT, 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 FrontView REIT,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and FrontView REIT,.
Diversification Opportunities for CTO Realty and FrontView REIT,
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CTO and FrontView is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and FrontView REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FrontView 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 FrontView REIT,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FrontView REIT, has no effect on the direction of CTO Realty i.e., CTO Realty and FrontView REIT, go up and down completely randomly.
Pair Corralation between CTO Realty and FrontView REIT,
Assuming the 90 days trading horizon CTO Realty Growth is expected to generate 0.35 times more return on investment than FrontView REIT,. However, CTO Realty Growth is 2.89 times less risky than FrontView REIT,. It trades about -0.03 of its potential returns per unit of risk. FrontView REIT, is currently generating about -0.04 per unit of risk. If you would invest 2,285 in CTO Realty Growth on November 3, 2024 and sell it today you would lose (20.00) from holding CTO Realty Growth or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTO Realty Growth vs. FrontView REIT,
Performance |
| Timeline |
| CTO Realty Growth |
| FrontView REIT, |
CTO Realty and FrontView REIT, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and FrontView REIT,
The main advantage of trading using opposite CTO Realty and FrontView REIT, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, FrontView REIT, 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 FrontView REIT, will offset losses from the drop in FrontView REIT,'s long position.| CTO Realty vs. City Office REIT | CTO Realty vs. Armada Hoffler Properties | CTO Realty vs. Digital Realty Trust | CTO Realty vs. Global Net Lease |
| FrontView REIT, vs. One Group Hospitality | FrontView REIT, vs. Summit Materials | FrontView REIT, vs. Perseus Mining Limited | FrontView REIT, vs. ioneer Ltd American |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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