Correlation Between Diguang Intl and Postal Realty

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

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

Diversification Opportunities for Diguang Intl and Postal Realty

-0.15

Correlation Coefficient

Diguang Intl  Postal Realty

Good diversification

The 3 months correlation between Diguang and Postal is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Diguang Intl Dev 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 Diguang Intl 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 Diguang Intl Dev 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 Diguang Intl i.e., Diguang Intl and Postal Realty go up and down completely randomly.

Pair Corralation between Diguang Intl and Postal Realty

Given the investment horizon of 90 days Diguang Intl Dev is expected to generate 87.24 times more return on investment than Postal Realty. However, Diguang Intl is 87.24 times more volatile than Postal Realty Trust. It trades about 0.15 of its potential returns per unit of risk. Postal Realty Trust is currently generating about 0.17 per unit of risk. If you would invest  0.11  in Diguang Intl Dev on May 12, 2025 and sell it today you would earn a total of  0.28  from holding Diguang Intl Dev or generate 254.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Diguang Intl Dev  vs.  Postal Realty Trust

Diguang Intl Dev

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Diguang Intl Dev are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Diguang Intl reported solid returns over the last few months and may actually be approaching a breakup point.

Postal Realty Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Postal Realty Trust are ranked lower than 13 (%) 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 Diguang Intl and Postal Realty

The main advantage of trading using opposite Diguang Intl and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diguang Intl 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 Diguang Intl Dev 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..