Correlation Between Colas SA and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both Colas SA and Reinsurance Group 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 Colas SA and Reinsurance Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and Reinsurance Group of, you can compare the effects of market volatilities on Colas SA and Reinsurance Group 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 Colas SA with a short position of Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and Reinsurance Group.
Diversification Opportunities for Colas SA and Reinsurance Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Colas and Reinsurance is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group and Colas 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 Colas SA are associated (or correlated) with Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Colas SA i.e., Colas SA and Reinsurance Group go up and down completely randomly.
Pair Corralation between Colas SA and Reinsurance Group
If you would invest 20,597 in Reinsurance Group of on August 24, 2024 and sell it today you would earn a total of 2,320 from holding Reinsurance Group of or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Colas SA vs. Reinsurance Group of
Performance |
| Timeline |
| Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Reinsurance Group |
Colas SA and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colas SA and Reinsurance Group
The main advantage of trading using opposite Colas SA and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. RenaissanceRe Holdings | Colas SA vs. Maiden Holdings |
| Reinsurance Group vs. Maiden Holdings | Reinsurance Group vs. Greenlight Capital Re | Reinsurance Group vs. RenaissanceRe Holdings | Reinsurance Group vs. Renaissancere Holdings |
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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