Correlation Between RenaissanceRe Holdings and BNRE Old
Can any of the company-specific risk be diversified away by investing in both RenaissanceRe Holdings and BNRE Old 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 BNRE Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RenaissanceRe Holdings and BNRE Old, you can compare the effects of market volatilities on RenaissanceRe Holdings and BNRE Old 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 BNRE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of RenaissanceRe Holdings and BNRE Old.
Diversification Opportunities for RenaissanceRe Holdings and BNRE Old
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RenaissanceRe and BNRE is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding RenaissanceRe Holdings and BNRE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNRE Old 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 BNRE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNRE Old has no effect on the direction of RenaissanceRe Holdings i.e., RenaissanceRe Holdings and BNRE Old go up and down completely randomly.
Pair Corralation between RenaissanceRe Holdings and BNRE Old
If you would invest 5,770 in BNRE Old on November 2, 2024 and sell it today you would earn a total of 0.00 from holding BNRE Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
RenaissanceRe Holdings vs. BNRE Old
Performance |
| Timeline |
| RenaissanceRe Holdings |
| BNRE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Market Crasher
RenaissanceRe Holdings and BNRE Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RenaissanceRe Holdings and BNRE Old
The main advantage of trading using opposite RenaissanceRe Holdings and BNRE Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RenaissanceRe Holdings position performs unexpectedly, BNRE Old 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 BNRE Old will offset losses from the drop in BNRE Old's long position.| RenaissanceRe Holdings vs. RenaissanceRe Holdings | RenaissanceRe Holdings vs. Athene Holding | RenaissanceRe Holdings vs. AXIS Capital Holdings | RenaissanceRe Holdings vs. Truist Financial |
| BNRE Old vs. Maiden Holdings | BNRE Old vs. Renaissancere Holdings | BNRE Old vs. Greenlight Capital Re | BNRE Old vs. Reinsurance Group of |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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