Correlation Between FrontView REIT, and CTO Realty
Can any of the company-specific risk be diversified away by investing in both FrontView REIT, 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 FrontView REIT, and CTO Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FrontView REIT, and CTO Realty Growth, you can compare the effects of market volatilities on FrontView REIT, 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 FrontView REIT, with a short position of CTO Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and CTO Realty.
Diversification Opportunities for FrontView REIT, and CTO Realty
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between FrontView and CTO is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, 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 FrontView REIT, 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 FrontView REIT, 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 FrontView REIT, i.e., FrontView REIT, and CTO Realty go up and down completely randomly.
Pair Corralation between FrontView REIT, and CTO Realty
Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the CTO Realty. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.0 times less risky than CTO Realty. The stock trades about 0.0 of its potential returns per unit of risk. The CTO Realty Growth is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,759 in CTO Realty Growth on September 15, 2024 and sell it today you would earn a total of 458.00 from holding CTO Realty Growth or generate 26.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.78% |
| Values | Daily Returns |
FrontView REIT, vs. CTO Realty Growth
Performance |
| Timeline |
| FrontView REIT, |
| CTO Realty Growth |
FrontView REIT, and CTO Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FrontView REIT, and CTO Realty
The main advantage of trading using opposite FrontView REIT, and CTO Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FrontView REIT, 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.| FrontView REIT, vs. CTO Realty Growth | FrontView REIT, vs. Armada Hoffler Properties | FrontView REIT, vs. Modiv Inc | FrontView REIT, vs. NexPoint Diversified Real |
| CTO Realty vs. Gladstone Commercial Corp | CTO Realty vs. AGNC Investment Corp | CTO Realty vs. AGNC Investment Corp | CTO Realty vs. AGNC Investment Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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