Correlation Between Pitney Bowes and Baltic International

Can any of the company-specific risk be diversified away by investing in both Pitney Bowes and Baltic International 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 Pitney Bowes and Baltic International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pitney Bowes NT and Baltic International USA, you can compare the effects of market volatilities on Pitney Bowes and Baltic International 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 Pitney Bowes with a short position of Baltic International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pitney Bowes and Baltic International.

Diversification Opportunities for Pitney Bowes and Baltic International

0.0

Correlation Coefficient

Pitney Bowes  Baltic International

Pay attention - limited upside

The 3 months correlation between Pitney and Baltic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pitney Bowes NT and Baltic International USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baltic International USA and Pitney Bowes 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 Pitney Bowes NT are associated (or correlated) with Baltic International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baltic International USA has no effect on the direction of Pitney Bowes i.e., Pitney Bowes and Baltic International go up and down completely randomly.

Pair Corralation between Pitney Bowes and Baltic International

If you would invest  1,895  in Pitney Bowes NT on December 29, 2024 and sell it today you would earn a total of  131.00  from holding Pitney Bowes NT or generate 6.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pitney Bowes NT  vs.  Baltic International USA

Pitney Bowes NT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pitney Bowes NT are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Pitney Bowes may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Baltic International USA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baltic International USA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Baltic International is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pitney Bowes and Baltic International

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

The idea behind Pitney Bowes NT and Baltic International USA 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.