Correlation Between Postal Realty and Atlantic American
Can any of the company-specific risk be diversified away by investing in both Postal Realty and Atlantic American 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 Postal Realty and Atlantic American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Realty Trust and Atlantic American, you can compare the effects of market volatilities on Postal Realty and Atlantic American 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 Postal Realty with a short position of Atlantic American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Realty and Atlantic American.
Diversification Opportunities for Postal Realty and Atlantic American
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Postal and Atlantic is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Postal Realty Trust and Atlantic American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic American and Postal 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 Postal Realty Trust are associated (or correlated) with Atlantic American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic American has no effect on the direction of Postal Realty i.e., Postal Realty and Atlantic American go up and down completely randomly.
Pair Corralation between Postal Realty and Atlantic American
Given the investment horizon of 90 days Postal Realty Trust is expected to generate 0.31 times more return on investment than Atlantic American. However, Postal Realty Trust is 3.26 times less risky than Atlantic American. It trades about 0.06 of its potential returns per unit of risk. Atlantic American is currently generating about 0.02 per unit of risk. If you would invest 1,281 in Postal Realty Trust on August 24, 2024 and sell it today you would earn a total of 99.00 from holding Postal Realty Trust or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Realty Trust vs. Atlantic American
Performance |
| Timeline |
| Postal Realty Trust |
| Atlantic American |
Postal Realty and Atlantic American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Realty and Atlantic American
The main advantage of trading using opposite Postal Realty and Atlantic American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Realty position performs unexpectedly, Atlantic American 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 Atlantic American will offset losses from the drop in Atlantic American's long position.| Postal Realty vs. Office Properties Income | Postal Realty vs. Boston Properties | Postal Realty vs. SL Green Realty | Postal Realty vs. Alexandria Real Estate |
| Atlantic American vs. CNO Financial Group | Atlantic American vs. MetLife Preferred Stock | Atlantic American vs. FG Annuities Life | Atlantic American vs. Prudential Public Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |