Correlation Between CTO Realty and BRT Realty
Can any of the company-specific risk be diversified away by investing in both CTO Realty and BRT 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 BRT 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 BRT Realty Trust, you can compare the effects of market volatilities on CTO Realty and BRT 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 BRT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and BRT Realty.
Diversification Opportunities for CTO Realty and BRT Realty
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CTO and BRT is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and BRT Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRT 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 BRT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRT Realty Trust has no effect on the direction of CTO Realty i.e., CTO Realty and BRT Realty go up and down completely randomly.
Pair Corralation between CTO Realty and BRT Realty
Considering the 90-day investment horizon CTO Realty Growth is expected to generate 0.91 times more return on investment than BRT Realty. However, CTO Realty Growth is 1.1 times less risky than BRT Realty. It trades about 0.09 of its potential returns per unit of risk. BRT Realty Trust is currently generating about 0.07 per unit of risk. If you would invest 1,719 in CTO Realty Growth on September 3, 2024 and sell it today you would earn a total of 302.00 from holding CTO Realty Growth or generate 17.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTO Realty Growth vs. BRT Realty Trust
Performance |
| Timeline |
| CTO Realty Growth |
| BRT Realty Trust |
CTO Realty and BRT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and BRT Realty
The main advantage of trading using opposite CTO Realty and BRT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, BRT 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 BRT Realty will offset losses from the drop in BRT Realty'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 |
| BRT Realty vs. Clipper Realty | BRT Realty vs. Centerspace | BRT Realty vs. Elme Communities | BRT Realty vs. UDR Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |