Correlation Between Postal Realty and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both Postal Realty and Sonida Senior 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 Sonida Senior 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 Sonida Senior Living, you can compare the effects of market volatilities on Postal Realty and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Realty and Sonida Senior.
Diversification Opportunities for Postal Realty and Sonida Senior
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Postal and Sonida is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Postal Realty Trust and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of Postal Realty i.e., Postal Realty and Sonida Senior go up and down completely randomly.
Pair Corralation between Postal Realty and Sonida Senior
Given the investment horizon of 90 days Postal Realty Trust is expected to under-perform the Sonida Senior. But the stock apears to be less risky and, when comparing its historical volatility, Postal Realty Trust is 2.65 times less risky than Sonida Senior. The stock trades about -0.03 of its potential returns per unit of risk. The Sonida Senior Living is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,631 in Sonida Senior Living on September 1, 2024 and sell it today you would lose (25.00) from holding Sonida Senior Living or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Realty Trust vs. Sonida Senior Living
Performance |
| Timeline |
| Postal Realty Trust |
| Sonida Senior Living |
Postal Realty and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Realty and Sonida Senior
The main advantage of trading using opposite Postal Realty and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Realty position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.| Postal Realty vs. Douglas Emmett | Postal Realty vs. Alexandria Real Estate | Postal Realty vs. Vornado Realty Trust | Postal Realty vs. Highwoods Properties |
| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |