Correlation Between Cousins Properties and Postal Realty
Can any of the company-specific risk be diversified away by investing in both Cousins 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 Cousins 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 Cousins Properties Incorporated and Postal Realty Trust, you can compare the effects of market volatilities on Cousins 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 Cousins Properties with a short position of Postal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cousins Properties and Postal Realty.
Diversification Opportunities for Cousins Properties and Postal Realty
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cousins and Postal is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cousins Properties Incorporate 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 Cousins 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 Cousins Properties Incorporated 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 Cousins Properties i.e., Cousins Properties and Postal Realty go up and down completely randomly.
Pair Corralation between Cousins Properties and Postal Realty
Considering the 90-day investment horizon Cousins Properties Incorporated is expected to generate 1.11 times more return on investment than Postal Realty. However, Cousins Properties is 1.11 times more volatile than Postal Realty Trust. It trades about 0.07 of its potential returns per unit of risk. Postal Realty Trust is currently generating about -0.07 per unit of risk. If you would invest 2,918 in Cousins Properties Incorporated on September 15, 2024 and sell it today you would earn a total of 146.00 from holding Cousins Properties Incorporated or generate 5.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cousins Properties Incorporate vs. Postal Realty Trust
Performance |
Timeline |
Cousins Properties |
Postal Realty Trust |
Cousins Properties and Postal Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cousins Properties and Postal Realty
The main advantage of trading using opposite Cousins Properties and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cousins 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.Cousins Properties vs. Boston Properties | Cousins Properties vs. Alexandria Real Estate | Cousins Properties vs. Vornado Realty Trust | Cousins Properties vs. Highwoods Properties |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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