Correlation Between Reinsurance Group and Resona Holdings
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group and Resona 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 Reinsurance Group and Resona Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and Resona Holdings, you can compare the effects of market volatilities on Reinsurance Group and Resona 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 Reinsurance Group with a short position of Resona Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and Resona Holdings.
Diversification Opportunities for Reinsurance Group and Resona Holdings
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Reinsurance and Resona is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of and Resona Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resona Holdings and Reinsurance Group 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 Reinsurance Group of are associated (or correlated) with Resona Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resona Holdings has no effect on the direction of Reinsurance Group i.e., Reinsurance Group and Resona Holdings go up and down completely randomly.
Pair Corralation between Reinsurance Group and Resona Holdings
Assuming the 90 days trading horizon Reinsurance Group is expected to generate 2.46 times less return on investment than Resona Holdings. In addition to that, Reinsurance Group is 1.01 times more volatile than Resona Holdings. It trades about 0.16 of its total potential returns per unit of risk. Resona Holdings is currently generating about 0.4 per unit of volatility. If you would invest 600.00 in Resona Holdings on September 1, 2024 and sell it today you would earn a total of 180.00 from holding Resona Holdings or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Reinsurance Group of vs. Resona Holdings
Performance |
| Timeline |
| Reinsurance Group |
| Resona Holdings |
Reinsurance Group and Resona Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and Resona Holdings
The main advantage of trading using opposite Reinsurance Group and Resona Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group position performs unexpectedly, Resona 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 Resona Holdings will offset losses from the drop in Resona Holdings' long position.| Reinsurance Group vs. Superior Plus Corp | Reinsurance Group vs. Origin Agritech | Reinsurance Group vs. Identiv | Reinsurance Group vs. INTUITIVE SURGICAL |
| Resona Holdings vs. Singapore Reinsurance | Resona Holdings vs. United Insurance Holdings | Resona Holdings vs. Reinsurance Group of | Resona Holdings vs. MI Homes |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |