Correlation Between Creative Global and Postal Realty

Can any of the company-specific risk be diversified away by investing in both Creative Global and Postal Realty 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 Creative Global and Postal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Creative Global Technology and Postal Realty Trust, you can compare the effects of market volatilities on Creative Global and Postal Realty 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 Creative Global with a short position of Postal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creative Global and Postal Realty.

Diversification Opportunities for Creative Global and Postal Realty

0.37

Correlation Coefficient

Creative Global  Postal Realty

Weak diversification

The 3 months correlation between Creative and Postal is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Creative Global Technology and Postal Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Realty Trust and Creative Global 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 Creative Global Technology are associated (or correlated) with Postal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Realty Trust has no effect on the direction of Creative Global i.e., Creative Global and Postal Realty go up and down completely randomly.

Pair Corralation between Creative Global and Postal Realty

Given the investment horizon of 90 days Creative Global Technology is expected to generate 12.53 times more return on investment than Postal Realty. However, Creative Global is 12.53 times more volatile than Postal Realty Trust. It trades about 0.03 of its potential returns per unit of risk. Postal Realty Trust is currently generating about 0.16 per unit of risk. If you would invest  97.00  in Creative Global Technology on May 21, 2025 and sell it today you would lose (26.00) from holding Creative Global Technology or give up 26.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Creative Global Technology  vs.  Postal Realty Trust

Creative Global Tech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Creative Global Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Creative Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Postal Realty Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Postal Realty Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Postal Realty disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Creative Global and Postal Realty

The main advantage of trading using opposite Creative Global and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creative Global position performs unexpectedly, Postal Realty 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 Postal Realty will offset losses from the drop in Postal Realty's long position.

The idea behind Creative Global Technology and Postal Realty Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.