Correlation Between CTO Realty and Global Net
Can any of the company-specific risk be diversified away by investing in both CTO Realty and Global Net 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 Global Net 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 Global Net Lease,, you can compare the effects of market volatilities on CTO Realty and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Global Net.
Diversification Opportunities for CTO Realty and Global Net
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CTO and Global is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Global Net Lease, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease, 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease, has no effect on the direction of CTO Realty i.e., CTO Realty and Global Net go up and down completely randomly.
Pair Corralation between CTO Realty and Global Net
Considering the 90-day investment horizon CTO Realty Growth is expected to generate 0.66 times more return on investment than Global Net. However, CTO Realty Growth is 1.52 times less risky than Global Net. It trades about 0.21 of its potential returns per unit of risk. Global Net Lease, is currently generating about 0.05 per unit of risk. If you would invest 1,931 in CTO Realty Growth on November 9, 2024 and sell it today you would earn a total of 93.00 from holding CTO Realty Growth or generate 4.82% 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. Global Net Lease,
Performance |
| Timeline |
| CTO Realty Growth |
| Global Net Lease, |
CTO Realty and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and Global Net
The main advantage of trading using opposite CTO Realty and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net'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 |
| Global Net vs. Peakstone Realty Trust | Global Net vs. Gladstone Commercial | Global Net vs. CTO Realty Growth | Global Net vs. Brightspire Capital |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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