Correlation Between Urban Edge and CTO Realty
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and CTO Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and CTO Realty Growth, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of CTO Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and CTO Realty.
Diversification Opportunities for Urban Edge and CTO Realty
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Urban and CTO is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge 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 Urban Edge 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 Urban Edge 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 Urban Edge i.e., Urban Edge and CTO Realty go up and down completely randomly.
Pair Corralation between Urban Edge and CTO Realty
Allowing for the 90-day total investment horizon Urban Edge Properties is expected to under-perform the CTO Realty. In addition to that, Urban Edge is 1.21 times more volatile than CTO Realty Growth. It trades about -0.1 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. CTO Realty Growth
Performance |
| Timeline |
| Urban Edge Properties |
| CTO Realty Growth |
Urban Edge and CTO Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and CTO Realty
The main advantage of trading using opposite Urban Edge and CTO Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Rithm Property Trust | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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