Correlation Between RenaissanceRe Holdings and SiriusPoint
Can any of the company-specific risk be diversified away by investing in both RenaissanceRe Holdings and SiriusPoint 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 RenaissanceRe Holdings and SiriusPoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RenaissanceRe Holdings and SiriusPoint, you can compare the effects of market volatilities on RenaissanceRe Holdings and SiriusPoint 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 RenaissanceRe Holdings with a short position of SiriusPoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of RenaissanceRe Holdings and SiriusPoint.
Diversification Opportunities for RenaissanceRe Holdings and SiriusPoint
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RenaissanceRe and SiriusPoint is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding RenaissanceRe Holdings and SiriusPoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiriusPoint and RenaissanceRe Holdings 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 RenaissanceRe Holdings are associated (or correlated) with SiriusPoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiriusPoint has no effect on the direction of RenaissanceRe Holdings i.e., RenaissanceRe Holdings and SiriusPoint go up and down completely randomly.
Pair Corralation between RenaissanceRe Holdings and SiriusPoint
Assuming the 90 days trading horizon RenaissanceRe Holdings is expected to generate 1.77 times less return on investment than SiriusPoint. In addition to that, RenaissanceRe Holdings is 1.33 times more volatile than SiriusPoint. It trades about 0.06 of its total potential returns per unit of risk. SiriusPoint is currently generating about 0.15 per unit of volatility. If you would invest 2,503 in SiriusPoint on August 23, 2024 and sell it today you would earn a total of 28.00 from holding SiriusPoint or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RenaissanceRe Holdings vs. SiriusPoint
Performance |
| Timeline |
| RenaissanceRe Holdings |
| SiriusPoint |
RenaissanceRe Holdings and SiriusPoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RenaissanceRe Holdings and SiriusPoint
The main advantage of trading using opposite RenaissanceRe Holdings and SiriusPoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RenaissanceRe Holdings position performs unexpectedly, SiriusPoint 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 SiriusPoint will offset losses from the drop in SiriusPoint's long position.| RenaissanceRe Holdings vs. SiriusPoint | RenaissanceRe Holdings vs. Greenlight Capital Re | RenaissanceRe Holdings vs. Maiden Holdings | RenaissanceRe Holdings vs. Renaissancere Holdings |
| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage | SiriusPoint vs. Aquagold International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |