Correlation Between Postal Realty and United Homes
Can any of the company-specific risk be diversified away by investing in both Postal Realty and United Homes 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 United Homes 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 United Homes Group, you can compare the effects of market volatilities on Postal Realty and United Homes 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 United Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Realty and United Homes.
Diversification Opportunities for Postal Realty and United Homes
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and United is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Postal Realty Trust and United Homes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Homes Group 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 United Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Homes Group has no effect on the direction of Postal Realty i.e., Postal Realty and United Homes go up and down completely randomly.
Pair Corralation between Postal Realty and United Homes
Given the investment horizon of 90 days Postal Realty Trust is expected to under-perform the United Homes. But the stock apears to be less risky and, when comparing its historical volatility, Postal Realty Trust is 3.51 times less risky than United Homes. The stock trades about -0.03 of its potential returns per unit of risk. The United Homes Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 539.00 in United Homes Group on September 1, 2024 and sell it today you would earn a total of 99.00 from holding United Homes Group or generate 18.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Realty Trust vs. United Homes Group
Performance |
| Timeline |
| Postal Realty Trust |
| United Homes Group |
Postal Realty and United Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Realty and United Homes
The main advantage of trading using opposite Postal Realty and United Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Realty position performs unexpectedly, United Homes 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 United Homes will offset losses from the drop in United Homes' long position.| Postal Realty vs. Douglas Emmett | Postal Realty vs. Vornado Realty Trust | Postal Realty vs. Highwoods Properties | Postal Realty vs. Piedmont Office Realty |
| United Homes vs. AmTrust Financial Services | United Homes vs. Artisan Partners Asset | United Homes vs. Marine Products | United Homes vs. Juniata Valley Financial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |