Correlation Between CTO Realty and One Liberty
Can any of the company-specific risk be diversified away by investing in both CTO Realty and One Liberty 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 One Liberty 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 One Liberty Properties, you can compare the effects of market volatilities on CTO Realty and One Liberty 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 One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and One Liberty.
Diversification Opportunities for CTO Realty and One Liberty
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CTO and One is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty Properties 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 One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of CTO Realty i.e., CTO Realty and One Liberty go up and down completely randomly.
Pair Corralation between CTO Realty and One Liberty
Assuming the 90 days trading horizon CTO Realty Growth is expected to under-perform the One Liberty. But the preferred stock apears to be less risky and, when comparing its historical volatility, CTO Realty Growth is 1.43 times less risky than One Liberty. The preferred stock trades about -0.14 of its potential returns per unit of risk. The One Liberty Properties is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,740 in One Liberty Properties on August 24, 2024 and sell it today you would earn a total of 119.00 from holding One Liberty Properties or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTO Realty Growth vs. One Liberty Properties
Performance |
| Timeline |
| CTO Realty Growth |
| One Liberty Properties |
CTO Realty and One Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and One Liberty
The main advantage of trading using opposite CTO Realty and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty'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 |
| One Liberty vs. Generationome Properties | One Liberty vs. HUMANA INC | One Liberty vs. Aquagold International | One Liberty vs. Barloworld Ltd ADR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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