Correlation Between Postal Realty and JD Sports
Can any of the company-specific risk be diversified away by investing in both Postal Realty and JD Sports 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 JD Sports 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 JD Sports Fashion, you can compare the effects of market volatilities on Postal Realty and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Realty and JD Sports.
Diversification Opportunities for Postal Realty and JD Sports
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Postal and JDDSF is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Postal Realty Trust and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Postal Realty i.e., Postal Realty and JD Sports go up and down completely randomly.
Pair Corralation between Postal Realty and JD Sports
Given the investment horizon of 90 days Postal Realty Trust is expected to generate 0.33 times more return on investment than JD Sports. However, Postal Realty Trust is 3.04 times less risky than JD Sports. It trades about -0.04 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.21 per unit of risk. If you would invest 1,432 in Postal Realty Trust on August 30, 2024 and sell it today you would lose (20.00) from holding Postal Realty Trust or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Realty Trust vs. JD Sports Fashion
Performance |
| Timeline |
| Postal Realty Trust |
| JD Sports Fashion |
Postal Realty and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Realty and JD Sports
The main advantage of trading using opposite Postal Realty and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Realty position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Postal Realty vs. Office Properties Income | Postal Realty vs. SL Green Realty | Postal Realty vs. Highwoods Properties | Postal Realty vs. Equity Commonwealth |
| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |