Correlation Between Postal Realty and Inventrust Properties

Can any of the company-specific risk be diversified away by investing in both Postal Realty and Inventrust Properties 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 Inventrust Properties 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 Inventrust Properties Corp, you can compare the effects of market volatilities on Postal Realty and Inventrust Properties 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 Inventrust Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Realty and Inventrust Properties.

Diversification Opportunities for Postal Realty and Inventrust Properties

-0.38

Correlation Coefficient

Postal Realty  Inventrust Properties

Very good diversification

The 3 months correlation between Postal and Inventrust is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Postal Realty Trust and Inventrust Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventrust Properties 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 Inventrust Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventrust Properties has no effect on the direction of Postal Realty i.e., Postal Realty and Inventrust Properties go up and down completely randomly.

Pair Corralation between Postal Realty and Inventrust Properties

Given the investment horizon of 90 days Postal Realty Trust is expected to generate 1.22 times more return on investment than Inventrust Properties. However, Postal Realty is 1.22 times more volatile than Inventrust Properties Corp. It trades about 0.19 of its potential returns per unit of risk. Inventrust Properties Corp is currently generating about -0.07 per unit of risk. If you would invest  1,257  in Postal Realty Trust on May 10, 2025 and sell it today you would earn a total of  204.00  from holding Postal Realty Trust or generate 16.23% 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.  Inventrust Properties Corp

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 14 (%) 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.

Inventrust Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days Inventrust Properties Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Inventrust Properties is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Postal Realty and Inventrust Properties

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

The idea behind Postal Realty Trust and Inventrust Properties Corp 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.