Correlation Between CTO Realty and Pacer Financial
Can any of the company-specific risk be diversified away by investing in both CTO Realty and Pacer Financial 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 Pacer Financial 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 Pacer Financial, you can compare the effects of market volatilities on CTO Realty and Pacer Financial 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 Pacer Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Pacer Financial.
Diversification Opportunities for CTO Realty and Pacer Financial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CTO and Pacer is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Pacer Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Financial 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 Pacer Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Financial has no effect on the direction of CTO Realty i.e., CTO Realty and Pacer Financial go up and down completely randomly.
Pair Corralation between CTO Realty and Pacer Financial
If you would invest 1,955 in CTO Realty Growth on August 24, 2024 and sell it today you would earn a total of 11.00 from holding CTO Realty Growth or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CTO Realty Growth vs. Pacer Financial
Performance |
| Timeline |
| CTO Realty Growth |
| Pacer Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CTO Realty and Pacer Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and Pacer Financial
The main advantage of trading using opposite CTO Realty and Pacer Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, Pacer Financial 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 Pacer Financial will offset losses from the drop in Pacer Financial'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 |
| Pacer Financial vs. Gladstone Commercial | Pacer Financial vs. W P Carey | Pacer Financial vs. Peakstone Realty Trust | Pacer Financial vs. CTO Realty Growth |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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