Correlation Between BTQ Technologies and Postal Realty

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

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

Diversification Opportunities for BTQ Technologies and Postal Realty

-0.88

Correlation Coefficient

BTQ Technologies  Postal Realty

Pay attention - limited upside

The 3 months correlation between BTQ and Postal is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding BTQ Technologies 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 BTQ Technologies 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 BTQ Technologies 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 BTQ Technologies i.e., BTQ Technologies and Postal Realty go up and down completely randomly.

Pair Corralation between BTQ Technologies and Postal Realty

Assuming the 90 days horizon BTQ Technologies Corp is expected to generate 11.08 times more return on investment than Postal Realty. However, BTQ Technologies is 11.08 times more volatile than Postal Realty Trust. It trades about 0.09 of its potential returns per unit of risk. Postal Realty Trust is currently generating about 0.0 per unit of risk. If you would invest  29.00  in BTQ Technologies Corp on October 21, 2024 and sell it today you would earn a total of  223.00  from holding BTQ Technologies Corp or generate 768.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	83.87%
Values	Daily Returns

BTQ Technologies Corp  vs.  Postal Realty Trust

BTQ Technologies Corp

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BTQ Technologies Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, BTQ Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Postal Realty Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Postal Realty Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with BTQ Technologies and Postal Realty

The main advantage of trading using opposite BTQ Technologies and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTQ Technologies 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 BTQ Technologies Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.