Correlation Between Prenetics Global and Renaissancere Holdings
Can any of the company-specific risk be diversified away by investing in both Prenetics Global 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 Prenetics Global and Renaissancere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prenetics Global and Renaissancere Holdings, you can compare the effects of market volatilities on Prenetics Global 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 Prenetics Global with a short position of Renaissancere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prenetics Global and Renaissancere Holdings.
Diversification Opportunities for Prenetics Global and Renaissancere Holdings
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prenetics and Renaissancere is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Prenetics Global and Renaissancere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renaissancere Holdings and Prenetics Global 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 Prenetics Global 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 Prenetics Global i.e., Prenetics Global and Renaissancere Holdings go up and down completely randomly.
Pair Corralation between Prenetics Global and Renaissancere Holdings
Considering the 90-day investment horizon Prenetics Global is expected to generate 25.95 times more return on investment than Renaissancere Holdings. However, Prenetics Global is 25.95 times more volatile than Renaissancere Holdings. It trades about 0.04 of its potential returns per unit of risk. Renaissancere Holdings is currently generating about 0.04 per unit of risk. If you would invest 2,280 in Prenetics Global on October 21, 2024 and sell it today you would lose (1,714) from holding Prenetics Global or give up 75.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prenetics Global vs. Renaissancere Holdings
Performance |
| Timeline |
| Prenetics Global |
| Renaissancere Holdings |
Prenetics Global and Renaissancere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prenetics Global and Renaissancere Holdings
The main advantage of trading using opposite Prenetics Global and Renaissancere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prenetics Global 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.| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
| Renaissancere Holdings vs. Reinsurance Group of | Renaissancere Holdings vs. Greenlight Capital Re | Renaissancere Holdings vs. Siriuspoint | Renaissancere Holdings vs. SCOR PK |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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