Correlation Between Renaissance Europe and BEKA LUX
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By analyzing existing cross correlation between Renaissance Europe C and BEKA LUX SICAV, you can compare the effects of market volatilities on Renaissance Europe and BEKA LUX 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 Renaissance Europe with a short position of BEKA LUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renaissance Europe and BEKA LUX.
Diversification Opportunities for Renaissance Europe and BEKA LUX
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Renaissance and BEKA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Renaissance Europe C and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV and Renaissance Europe 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 Renaissance Europe C are associated (or correlated) with BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of Renaissance Europe i.e., Renaissance Europe and BEKA LUX go up and down completely randomly.
Pair Corralation between Renaissance Europe and BEKA LUX
Assuming the 90 days trading horizon Renaissance Europe C is expected to under-perform the BEKA LUX. In addition to that, Renaissance Europe is 3.69 times more volatile than BEKA LUX SICAV. It trades about -0.14 of its total potential returns per unit of risk. BEKA LUX SICAV is currently generating about 0.1 per unit of volatility. If you would invest 8,724 in BEKA LUX SICAV on August 29, 2024 and sell it today you would earn a total of 50.00 from holding BEKA LUX SICAV or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renaissance Europe C vs. BEKA LUX SICAV
Performance |
| Timeline |
| Renaissance Europe |
| BEKA LUX SICAV |
Renaissance Europe and BEKA LUX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renaissance Europe and BEKA LUX
The main advantage of trading using opposite Renaissance Europe and BEKA LUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renaissance Europe position performs unexpectedly, BEKA LUX 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 BEKA LUX will offset losses from the drop in BEKA LUX's long position.| Renaissance Europe vs. Cap ISR Actions | Renaissance Europe vs. Superior Plus Corp | Renaissance Europe vs. Origin Agritech | Renaissance Europe vs. Identiv |
| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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