Correlation Between CT Real and Regency Centers

Can any of the company-specific risk be diversified away by investing in both CT Real and Regency Centers 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 CT Real and Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CT Real Estate and Regency Centers, you can compare the effects of market volatilities on CT Real and Regency Centers 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 CT Real with a short position of Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Real and Regency Centers.

Diversification Opportunities for CT Real and Regency Centers

0.66

Correlation Coefficient

CT Real  Regency Centers

Poor diversification

The 3 months correlation between CRT-UN and Regency is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CT Real Estate and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers and CT 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 CT Real Estate are associated (or correlated) with Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of CT Real i.e., CT Real and Regency Centers go up and down completely randomly.

Pair Corralation between CT Real and Regency Centers

Assuming the 90 days trading horizon CT Real Estate is expected to generate 1.29 times more return on investment than Regency Centers. However, CT Real is 1.29 times more volatile than Regency Centers. It trades about 0.13 of its potential returns per unit of risk. Regency Centers is currently generating about 0.16 per unit of risk. If you would invest  1,549  in CT Real Estate on July 22, 2025 and sell it today you would earn a total of  99.00  from holding CT Real Estate or generate 6.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

CT Real Estate  vs.  Regency Centers

CT Real Estate

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CT Real Estate are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CT Real may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Regency Centers

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Regency Centers are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Regency Centers is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with CT Real and Regency Centers

The main advantage of trading using opposite CT Real and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Real position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.

The idea behind CT Real Estate and Regency Centers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.