Real Estate Securities and a Filter-based, Short-term Trading Strategy

Anecdotal evidence provides overwhelming support to the belief that sophisticated real estate investors profit by timing long-run real estate cycles. This article examines the investment performance benefits that sophisticated investors may derive from short-run cycles in real estate, specifically, through the publicly traded real estate markets. Using a simple strategy that filters out noise in real estate investment trust (REIT) price reversals, this study shows that a contrarian strategy is many times more profitable than the associated execution costs. Furthermore, the study demonstrates that the REIT market has been sufficiently liquid to execute this trading strategy. This last point is directly related to the filter strategy since only REITs with large price movements satisfy the hypothetical investor’s selection criteria.

The Solar Minimum Eclipse of 2019 July 2. III. Inferring the Coronal TeT_e with a Radiative Differential Emission Measure Inversion

Differential Emission Measure (DEM) inversion methods use the brightness of a set of emission lines to infer the line-of-sight (LOS) distribution of the electron temperature ($T_e$) in the corona. DEM inversions have been traditionally performed with collisionally excited lines at wavelengths in the Extreme Ultraviolet (EUV) and X-ray. However, such emission is difficult to observe beyond the inner corona (1.5 R$_\odot$), particularly in coronal holes. Given the importance of the $T_e$ distribution in the corona for exploring the viability of different heating processes, we introduce an analog of the DEM specifically for radiatively excited coronal emission lines, such as those observed during total solar eclipses (TSEs) and with coronagraphs. This Radiative DEM (R-DEM) inversion utilizes visible and infrared emission lines which are excited by photospheric radiation out to at least 3 R$_\odot$. Specifically, we use the Fe X (637 nm), Fe XI (789 nm), and Fe XIV (530 nm) coronal emission lines observed during the 2019 July 2 TSE near solar minimum. We find that despite a large $T_e$ spread in the inner corona, the distribution converges to an almost isothermal yet bimodal distribution beyond 1.4 R$_\odot$, with $T_e$ ranging from 1.1 to 1.4 in coronal holes, and from 1.4 to 1.65 MK in quiescent streamers. Application of the R-DEM inversion to the Predictive Science Inc. magnetohydrodynamic (MHD) simulation for the 2019 eclipse validates the R-DEM method and yields a similar LOS Te distribution to the eclipse data.Comment: 20 pages, 9 figures, accepted for publication in Ap