Correlation Between Realty Income and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Realty Income and SuRo Capital 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 Realty Income and SuRo Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and SuRo Capital Corp, you can compare the effects of market volatilities on Realty Income and SuRo Capital 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 Realty Income with a short position of SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and SuRo Capital.
Diversification Opportunities for Realty Income and SuRo Capital
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Realty and SuRo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo Capital Corp and Realty Income 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 Realty Income are associated (or correlated) with SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Realty Income i.e., Realty Income and SuRo Capital go up and down completely randomly.
Pair Corralation between Realty Income and SuRo Capital
Taking into account the 90-day investment horizon Realty Income is expected to generate 2.13 times more return on investment than SuRo Capital. However, Realty Income is 2.13 times more volatile than SuRo Capital Corp. It trades about 0.14 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about -0.04 per unit of risk. If you would invest 5,273 in Realty Income on November 5, 2024 and sell it today you would earn a total of 191.00 from holding Realty Income or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Realty Income vs. SuRo Capital Corp
Performance |
| Timeline |
| Realty Income |
| SuRo Capital Corp |
Realty Income and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and SuRo Capital
The main advantage of trading using opposite Realty Income and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income position performs unexpectedly, SuRo Capital 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 SuRo Capital will offset losses from the drop in SuRo Capital's long position.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
| SuRo Capital vs. Synchronoss Technologies 8375 | SuRo Capital vs. Great Elm Capital | SuRo Capital vs. Gladstone Investment | SuRo Capital vs. Harrow Health 8625 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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