Correlation Between CTO Realty and Armada Hflr
Can any of the company-specific risk be diversified away by investing in both CTO Realty and Armada Hflr 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 Armada Hflr 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 Armada Hflr Pr, you can compare the effects of market volatilities on CTO Realty and Armada Hflr 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 Armada Hflr. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Armada Hflr.
Diversification Opportunities for CTO Realty and Armada Hflr
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTO and Armada is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Armada Hflr Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Hflr Pr 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 Armada Hflr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Hflr Pr has no effect on the direction of CTO Realty i.e., CTO Realty and Armada Hflr go up and down completely randomly.
Pair Corralation between CTO Realty and Armada Hflr
Considering the 90-day investment horizon CTO Realty Growth is expected to generate 0.84 times more return on investment than Armada Hflr. However, CTO Realty Growth is 1.18 times less risky than Armada Hflr. It trades about 0.04 of its potential returns per unit of risk. Armada Hflr Pr is currently generating about 0.02 per unit of risk. If you would invest 1,622 in CTO Realty Growth on August 27, 2024 and sell it today you would earn a total of 359.00 from holding CTO Realty Growth or generate 22.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTO Realty Growth vs. Armada Hflr Pr
Performance |
| Timeline |
| CTO Realty Growth |
| Armada Hflr Pr |
CTO Realty and Armada Hflr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and Armada Hflr
The main advantage of trading using opposite CTO Realty and Armada Hflr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, Armada Hflr 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 Armada Hflr will offset losses from the drop in Armada Hflr's long position.| CTO Realty vs. Essential Properties Realty | CTO Realty vs. Armada Hflr Pr | CTO Realty vs. Brightspire Capital | CTO Realty vs. Broadstone Net Lease |
| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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