Correlation Between One Liberty and CTO Realty
Can any of the company-specific risk be diversified away by investing in both One Liberty 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 One Liberty and CTO Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Liberty Properties and CTO Realty Growth, you can compare the effects of market volatilities on One Liberty 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 One Liberty with a short position of CTO Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Liberty and CTO Realty.
Diversification Opportunities for One Liberty and CTO Realty
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and CTO is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding One Liberty Properties 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 One Liberty 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 One Liberty Properties 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 One Liberty i.e., One Liberty and CTO Realty go up and down completely randomly.
Pair Corralation between One Liberty and CTO Realty
Considering the 90-day investment horizon One Liberty Properties is expected to generate 1.02 times more return on investment than CTO Realty. However, One Liberty is 1.02 times more volatile than CTO Realty Growth. It trades about 0.08 of its potential returns per unit of risk. CTO Realty Growth is currently generating about 0.08 per unit of risk. If you would invest 1,985 in One Liberty Properties on November 9, 2024 and sell it today you would earn a total of 637.00 from holding One Liberty Properties or generate 32.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Liberty Properties vs. CTO Realty Growth
Performance |
| Timeline |
| One Liberty Properties |
| CTO Realty Growth |
One Liberty and CTO Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Liberty and CTO Realty
The main advantage of trading using opposite One Liberty and CTO Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Liberty 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.| One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |