Correlation Between CTO Realty and Peakstone Realty
Can any of the company-specific risk be diversified away by investing in both CTO Realty and Peakstone 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 CTO Realty and Peakstone Realty 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 Peakstone Realty Trust, you can compare the effects of market volatilities on CTO Realty and Peakstone 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 CTO Realty with a short position of Peakstone Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Peakstone Realty.
Diversification Opportunities for CTO Realty and Peakstone Realty
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CTO and Peakstone is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Peakstone Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peakstone Realty Trust 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 Peakstone Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peakstone Realty Trust has no effect on the direction of CTO Realty i.e., CTO Realty and Peakstone Realty go up and down completely randomly.
Pair Corralation between CTO Realty and Peakstone Realty
Assuming the 90 days trading horizon CTO Realty Growth is expected to generate 0.37 times more return on investment than Peakstone Realty. However, CTO Realty Growth is 2.68 times less risky than Peakstone Realty. It trades about 0.08 of its potential returns per unit of risk. Peakstone Realty Trust is currently generating about 0.02 per unit of risk. If you would invest 1,996 in CTO Realty Growth on August 27, 2024 and sell it today you would earn a total of 374.00 from holding CTO Realty Growth or generate 18.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTO Realty Growth vs. Peakstone Realty Trust
Performance |
| Timeline |
| CTO Realty Growth |
| Peakstone Realty Trust |
CTO Realty and Peakstone Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and Peakstone Realty
The main advantage of trading using opposite CTO Realty and Peakstone Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, Peakstone 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 Peakstone Realty will offset losses from the drop in Peakstone Realty'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 |
| Peakstone Realty vs. Global Net Lease, | Peakstone Realty vs. Gladstone Commercial | Peakstone Realty vs. CTO Realty Growth | Peakstone Realty vs. W P Carey |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |