Correlation Between CTO Realty and Whitestone REIT

Can any of the company-specific risk be diversified away by investing in both CTO Realty and Whitestone REIT 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 CTO Realty and Whitestone REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CTO Realty Growth and Whitestone REIT, you can compare the effects of market volatilities on CTO Realty and Whitestone REIT 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 CTO Realty with a short position of Whitestone REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTO Realty and Whitestone REIT.

Diversification Opportunities for CTO Realty and Whitestone REIT

0.96

Correlation Coefficient

CTO Realty  Whitestone REIT

Almost no diversification

The 3 months correlation between CTO and Whitestone is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding CTO Realty Growth and Whitestone REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitestone REIT and CTO Realty 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 CTO Realty Growth are associated (or correlated) with Whitestone REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitestone REIT has no effect on the direction of CTO Realty i.e., CTO Realty and Whitestone REIT go up and down completely randomly.

Pair Corralation between CTO Realty and Whitestone REIT

Considering the 90-day investment horizon CTO Realty Growth is expected to generate 0.72 times more return on investment than Whitestone REIT. However, CTO Realty Growth is 1.4 times less risky than Whitestone REIT. It trades about 0.29 of its potential returns per unit of risk. Whitestone REIT is currently generating about 0.18 per unit of risk. If you would invest  1,503  in CTO Realty Growth on October 7, 2025 and sell it today you would earn a total of  309.00  from holding CTO Realty Growth or generate 20.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

CTO Realty Growth  vs.  Whitestone REIT

CTO Realty Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CTO Realty Growth are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, CTO Realty displayed solid returns over the last few months and may actually be approaching a breakup point.

Whitestone REIT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Whitestone REIT are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Whitestone REIT reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CTO Realty and Whitestone REIT

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

The idea behind CTO Realty Growth and Whitestone REIT 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.