Correlation Between Postal Realty and California-Engels

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

Diversification Opportunities for Postal Realty and California-Engels

0.0

Correlation Coefficient

Postal Realty  California-Engels

Pay attention - limited upside

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

Pair Corralation between Postal Realty and California-Engels

If you would invest  1,260  in Postal Realty Trust on December 21, 2024 and sell it today you would earn a total of  125.00  from holding Postal Realty Trust or generate 9.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

Postal Realty Trust  vs.  California Engels Mining

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 6 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Postal Realty may actually be approaching a critical reversion point that can send shares even higher in April 2025.

California Engels Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days California Engels Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, California-Engels is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Postal Realty and California-Engels

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

The idea behind Postal Realty Trust and California Engels Mining 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 Stocks Directory module to find actively traded stocks across global markets.