Correlation Between Renaissance Europe and BGF Euro
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By analyzing existing cross correlation between Renaissance Europe C and BGF Euro Markets, you can compare the effects of market volatilities on Renaissance Europe and BGF Euro 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 BGF Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renaissance Europe and BGF Euro.
Diversification Opportunities for Renaissance Europe and BGF Euro
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Renaissance and BGF is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Renaissance Europe C and BGF Euro Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Euro Markets 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 BGF Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Euro Markets has no effect on the direction of Renaissance Europe i.e., Renaissance Europe and BGF Euro go up and down completely randomly.
Pair Corralation between Renaissance Europe and BGF Euro
Assuming the 90 days trading horizon Renaissance Europe C is expected to generate 1.27 times more return on investment than BGF Euro. However, Renaissance Europe is 1.27 times more volatile than BGF Euro Markets. It trades about -0.03 of its potential returns per unit of risk. BGF Euro Markets is currently generating about -0.08 per unit of risk. If you would invest 26,321 in Renaissance Europe C on September 1, 2024 and sell it today you would lose (157.00) from holding Renaissance Europe C or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Renaissance Europe C vs. BGF Euro Markets
Performance |
| Timeline |
| Renaissance Europe |
| BGF Euro Markets |
Renaissance Europe and BGF Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renaissance Europe and BGF Euro
The main advantage of trading using opposite Renaissance Europe and BGF Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renaissance Europe position performs unexpectedly, BGF Euro 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 BGF Euro will offset losses from the drop in BGF Euro's long position.| Renaissance Europe vs. Echiquier Major SRI | Renaissance Europe vs. Superior Plus Corp | Renaissance Europe vs. Origin Agritech | Renaissance Europe vs. Identiv |
| BGF Euro vs. Groupama Entreprises N | BGF Euro vs. Renaissance Europe C | BGF Euro vs. Superior Plus Corp | BGF Euro 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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