Correlation Between CTO Realty and Spirit Realty
Can any of the company-specific risk be diversified away by investing in both CTO Realty and Spirit 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 Spirit 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 Spirit Realty Capital, you can compare the effects of market volatilities on CTO Realty and Spirit 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 Spirit Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Spirit Realty.
Diversification Opportunities for CTO Realty and Spirit Realty
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CTO and Spirit is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Spirit Realty Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirit Realty Capital 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 Spirit Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirit Realty Capital has no effect on the direction of CTO Realty i.e., CTO Realty and Spirit Realty go up and down completely randomly.
Pair Corralation between CTO Realty and Spirit Realty
If you would invest 1,889 in CTO Realty Growth on August 27, 2024 and sell it today you would earn a total of 92.00 from holding CTO Realty Growth or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
CTO Realty Growth vs. Spirit Realty Capital
Performance |
| Timeline |
| CTO Realty Growth |
| Spirit Realty Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CTO Realty and Spirit Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTO Realty and Spirit Realty
The main advantage of trading using opposite CTO Realty and Spirit Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTO Realty position performs unexpectedly, Spirit 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 Spirit Realty will offset losses from the drop in Spirit 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 |
| Spirit Realty vs. Broadstone Net Lease | Spirit Realty vs. Armada Hflr Pr | Spirit Realty vs. Brightspire Capital | Spirit Realty vs. Safehold |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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