Correlation Between Inventrust Properties and Postal Realty
Can any of the company-specific risk be diversified away by investing in both Inventrust Properties 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 Inventrust Properties and Postal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inventrust Properties Corp and Postal Realty Trust, you can compare the effects of market volatilities on Inventrust Properties 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 Inventrust Properties with a short position of Postal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventrust Properties and Postal Realty.
Diversification Opportunities for Inventrust Properties and Postal Realty
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inventrust and Postal is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Inventrust Properties Corp 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 Inventrust Properties 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 Inventrust Properties Corp 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 Inventrust Properties i.e., Inventrust Properties and Postal Realty go up and down completely randomly.
Pair Corralation between Inventrust Properties and Postal Realty
Considering the 90-day investment horizon Inventrust Properties is expected to generate 20.51 times less return on investment than Postal Realty. But when comparing it to its historical volatility, Inventrust Properties Corp is 1.08 times less risky than Postal Realty. It trades about 0.01 of its potential returns per unit of risk. Postal Realty Trust is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,297 in Postal Realty Trust on April 25, 2025 and sell it today you would earn a total of 170.00 from holding Postal Realty Trust or generate 13.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Inventrust Properties Corp vs. Postal Realty Trust
Performance |
Timeline |
Inventrust Properties |
Postal Realty Trust |
Inventrust Properties and Postal Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inventrust Properties and Postal Realty
The main advantage of trading using opposite Inventrust Properties and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inventrust Properties 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.Inventrust Properties vs. Site Centers Corp | Inventrust Properties vs. Urban Edge Properties | Inventrust Properties vs. Rithm Property Trust | Inventrust Properties vs. Netstreit Corp |
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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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