Correlation Between CTO Realty and Medalist Diversified
Can any of the company-specific risk be diversified away by investing in both CTO Realty and Medalist Diversified 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 Medalist Diversified 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 Medalist Diversified Reit, you can compare the effects of market volatilities on CTO Realty and Medalist Diversified 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 Medalist Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Medalist Diversified.
Diversification Opportunities for CTO Realty and Medalist Diversified
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between CTO and Medalist is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Medalist Diversified Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medalist Diversified Reit 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 Medalist Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medalist Diversified Reit has no effect on the direction of CTO Realty i.e., CTO Realty and Medalist Diversified go up and down completely randomly.
Pair Corralation between CTO Realty and Medalist Diversified
Considering the 90-day investment horizon CTO Realty is expected to generate 4.06 times less return on investment than Medalist Diversified. In addition to that, CTO Realty is 1.47 times more volatile than Medalist Diversified Reit. It trades about 0.03 of its total potential returns per unit of risk. Medalist Diversified Reit is currently generating about 0.16 per unit of volatility. If you would invest 1,205 in Medalist Diversified Reit on August 24, 2024 and sell it today you would earn a total of 35.00 from holding Medalist Diversified Reit or generate 2.9% 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. Medalist Diversified Reit
Performance |
| Timeline |
| CTO Realty Growth |
| Medalist Diversified Reit |
CTO Realty and Medalist Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and Medalist Diversified
The main advantage of trading using opposite CTO Realty and Medalist Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, Medalist Diversified 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 Medalist Diversified will offset losses from the drop in Medalist Diversified'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 |
| Medalist Diversified vs. Modiv Inc | Medalist Diversified vs. Presidio Property Trust | Medalist Diversified vs. Gladstone Commercial | Medalist Diversified vs. Generationome Properties |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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