Correlation Between HR Real and CTO Realty
Can any of the company-specific risk be diversified away by investing in both HR Real 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 HR Real and CTO Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HR Real Estate and CTO Realty Growth, you can compare the effects of market volatilities on HR Real 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 HR Real with a short position of CTO Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of HR Real and CTO Realty.
Diversification Opportunities for HR Real and CTO Realty
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HRUFF and CTO is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding HR Real Estate 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 HR Real 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 HR Real Estate 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 HR Real i.e., HR Real and CTO Realty go up and down completely randomly.
Pair Corralation between HR Real and CTO Realty
Assuming the 90 days horizon HR Real is expected to generate 6.73 times less return on investment than CTO Realty. In addition to that, HR Real is 2.87 times more volatile than CTO Realty Growth. It trades about 0.0 of its total potential returns per unit of risk. CTO Realty Growth is currently generating about 0.05 per unit of volatility. If you would invest 1,553 in CTO Realty Growth on September 13, 2024 and sell it today you would earn a total of 464.00 from holding CTO Realty Growth or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.49% |
| Values | Daily Returns |
HR Real Estate vs. CTO Realty Growth
Performance |
| Timeline |
| HR Real Estate |
| CTO Realty Growth |
HR Real and CTO Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HR Real and CTO Realty
The main advantage of trading using opposite HR Real and CTO Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HR Real 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.| HR Real vs. Generationome Properties | HR Real vs. Modiv Inc | HR Real vs. Broadstone Net Lease | HR Real vs. Gladstone Commercial |
| CTO Realty vs. Apartment Investment and | CTO Realty vs. Clipper Realty | CTO Realty vs. BRT Realty Trust | CTO Realty vs. UDR Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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