Correlation Between US Bancorp and Postal Svgs

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both US Bancorp and Postal Svgs 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 US Bancorp and Postal Svgs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Bancorp and Postal Svgs Bk, you can compare the effects of market volatilities on US Bancorp and Postal Svgs 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 US Bancorp with a short position of Postal Svgs. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Bancorp and Postal Svgs.

Diversification Opportunities for US Bancorp and Postal Svgs

0.07
  Correlation Coefficient

Significant diversification

The 1 month correlation between US Bancorp and Postal is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding US Bancorp and Postal Svgs Bk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Svgs Bk and US Bancorp 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 US Bancorp are associated (or correlated) with Postal Svgs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Svgs Bk has no effect on the direction of US Bancorp i.e., US Bancorp and Postal Svgs go up and down completely randomly.

Pair Corralation between US Bancorp and Postal Svgs

Considering the 90-day investment horizon US Bancorp is expected to under-perform the Postal Svgs. But the stock apears to be less risky and, when comparing its historical volatility, US Bancorp is 1.01 times less risky than Postal Svgs. The stock trades about -0.34 of its potential returns per unit of risk. The Postal Svgs Bk is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,501  in Postal Svgs Bk on March 31, 2022 and sell it today you would earn a total of  34.00  from holding Postal Svgs Bk or generate 2.27% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

US Bancorp  vs.  Postal Svgs Bk

 Performance (%) 
      Timeline 
US Bancorp 
US Bancorp Performance
0 of 100
Over the last 90 days US Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0397
Payout Ratio
0.4
Last Split Factor
3:1
Forward Annual Dividend Rate
1.84
Dividend Date
2022-07-15
Ex Dividend Date
2022-06-29
Last Split Date
1999-04-16

US Bancorp Price Channel

Postal Svgs Bk 
Postal Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Postal Svgs Bk are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Postal Svgs may actually be approaching a critical reversion point that can send shares even higher in July 2022.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0525
Payout Ratio
0.75
Forward Annual Dividend Rate
0.77
Dividend Date
2022-08-24
Ex Dividend Date
2022-06-30

Postal Price Channel

US Bancorp and Postal Svgs Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with US Bancorp and Postal Svgs

The main advantage of trading using opposite US Bancorp and Postal Svgs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Bancorp position performs unexpectedly, Postal Svgs 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 Svgs will offset losses from the drop in Postal Svgs' long position.
The idea behind US Bancorp and Postal Svgs Bk 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.

Postal Svgs Bk

Pair trading matchups for Postal Svgs

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go