Correlation Between Where Food and Postal Realty

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

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

Diversification Opportunities for Where Food and Postal Realty

0.17

Correlation Coefficient

Where Food  Postal Realty

Average diversification

The 3 months correlation between Where and Postal is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes 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 Where Food 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 Where Food Comes 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 Where Food i.e., Where Food and Postal Realty go up and down completely randomly.

Pair Corralation between Where Food and Postal Realty

Given the investment horizon of 90 days Where Food is expected to generate 2.8 times less return on investment than Postal Realty. In addition to that, Where Food is 2.67 times more volatile than Postal Realty Trust. It trades about 0.02 of its total potential returns per unit of risk. Postal Realty Trust is currently generating about 0.14 per unit of volatility. If you would invest  1,272  in Postal Realty Trust on May 2, 2025 and sell it today you would earn a total of  134.00  from holding Postal Realty Trust or generate 10.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Where Food Comes  vs.  Postal Realty Trust

Where Food Comes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Where Food is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Postal Realty Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Postal Realty Trust are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Postal Realty may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Where Food and Postal Realty

The main advantage of trading using opposite Where Food and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food 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 Where Food Comes 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.