Correlation Between WIMFARM SA and RenaissanceRe Holdings
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and RenaissanceRe Holdings 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 WIMFARM SA and RenaissanceRe Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and RenaissanceRe Holdings, you can compare the effects of market volatilities on WIMFARM SA and RenaissanceRe Holdings 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 WIMFARM SA with a short position of RenaissanceRe Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and RenaissanceRe Holdings.
Diversification Opportunities for WIMFARM SA and RenaissanceRe Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and RenaissanceRe is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and RenaissanceRe Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RenaissanceRe Holdings and WIMFARM SA 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 WIMFARM SA EO are associated (or correlated) with RenaissanceRe Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RenaissanceRe Holdings has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and RenaissanceRe Holdings go up and down completely randomly.
Pair Corralation between WIMFARM SA and RenaissanceRe Holdings
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the RenaissanceRe Holdings. In addition to that, WIMFARM SA is 3.64 times more volatile than RenaissanceRe Holdings. It trades about 0.0 of its total potential returns per unit of risk. RenaissanceRe Holdings is currently generating about 0.01 per unit of volatility. If you would invest 23,800 in RenaissanceRe Holdings on October 29, 2024 and sell it today you would earn a total of 0.00 from holding RenaissanceRe Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. RenaissanceRe Holdings
Performance |
| Timeline |
| WIMFARM SA EO |
| RenaissanceRe Holdings |
WIMFARM SA and RenaissanceRe Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and RenaissanceRe Holdings
The main advantage of trading using opposite WIMFARM SA and RenaissanceRe Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, RenaissanceRe Holdings 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 RenaissanceRe Holdings will offset losses from the drop in RenaissanceRe Holdings' long position.| WIMFARM SA vs. PKSHA TECHNOLOGY INC | WIMFARM SA vs. Charter Communications | WIMFARM SA vs. Adtalem Global Education | WIMFARM SA vs. Iridium Communications |
| RenaissanceRe Holdings vs. Australian Agricultural | RenaissanceRe Holdings vs. WIMFARM SA EO | RenaissanceRe Holdings vs. X FAB Silicon Foundries | RenaissanceRe Holdings vs. Federal Agricultural Mortgage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |