Correlation Between Equinix and CTO Realty
Can any of the company-specific risk be diversified away by investing in both Equinix and CTO 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 Equinix and CTO Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and CTO Realty Growth, you can compare the effects of market volatilities on Equinix and CTO 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 Equinix with a short position of CTO Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and CTO Realty.
Diversification Opportunities for Equinix and CTO Realty
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Equinix and CTO is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and CTO Realty Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTO Realty Growth and Equinix 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 Equinix are associated (or correlated) with CTO Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTO Realty Growth has no effect on the direction of Equinix i.e., Equinix and CTO Realty go up and down completely randomly.
Pair Corralation between Equinix and CTO Realty
Given the investment horizon of 90 days Equinix is expected to generate 2.27 times less return on investment than CTO Realty. In addition to that, Equinix is 1.23 times more volatile than CTO Realty Growth. It trades about 0.04 of its total potential returns per unit of risk. CTO Realty Growth is currently generating about 0.1 per unit of volatility. If you would invest 1,914 in CTO Realty Growth on November 18, 2024 and sell it today you would earn a total of 139.00 from holding CTO Realty Growth or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinix vs. CTO Realty Growth
Performance |
| Timeline |
| Equinix |
| CTO Realty Growth |
Equinix and CTO Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinix and CTO Realty
The main advantage of trading using opposite Equinix and CTO Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix position performs unexpectedly, CTO 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 CTO Realty will offset losses from the drop in CTO Realty's long position.| Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
| CTO Realty vs. Essential Properties Realty | CTO Realty vs. Armada Hflr Pr | CTO Realty vs. Brightspire Capital | CTO Realty vs. Broadstone Net Lease |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |