Correlation Between COREBRIDGE FINANCIAL and REINET INVESTMENTS

Can any of the company-specific risk be diversified away by investing in both COREBRIDGE FINANCIAL and REINET INVESTMENTS 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 COREBRIDGE FINANCIAL and REINET INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COREBRIDGE FINANCIAL INC and REINET INVESTMENTS SCA, you can compare the effects of market volatilities on COREBRIDGE FINANCIAL and REINET INVESTMENTS 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 COREBRIDGE FINANCIAL with a short position of REINET INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of COREBRIDGE FINANCIAL and REINET INVESTMENTS.

Diversification Opportunities for COREBRIDGE FINANCIAL and REINET INVESTMENTS

0.27

Correlation Coefficient

COREBRIDGE FINANCIAL  REINET INVESTMENTS

Modest diversification

The 3 months correlation between COREBRIDGE and REINET is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding COREBRIDGE FINANCIAL INC and REINET INVESTMENTS SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REINET INVESTMENTS SCA and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC are associated (or correlated) with REINET INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REINET INVESTMENTS SCA has no effect on the direction of COREBRIDGE FINANCIAL i.e., COREBRIDGE FINANCIAL and REINET INVESTMENTS go up and down completely randomly.

Pair Corralation between COREBRIDGE FINANCIAL and REINET INVESTMENTS

Assuming the 90 days horizon COREBRIDGE FINANCIAL INC is expected to generate 0.71 times more return on investment than REINET INVESTMENTS. However, COREBRIDGE FINANCIAL INC is 1.41 times less risky than REINET INVESTMENTS. It trades about 0.04 of its potential returns per unit of risk. REINET INVESTMENTS SCA is currently generating about -0.04 per unit of risk. If you would invest  2,877  in COREBRIDGE FINANCIAL INC on December 24, 2024 and sell it today you would earn a total of  103.00  from holding COREBRIDGE FINANCIAL INC or generate 3.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

COREBRIDGE FINANCIAL INC  vs.  REINET INVESTMENTS SCA

COREBRIDGE FINANCIAL INC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in COREBRIDGE FINANCIAL INC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, COREBRIDGE FINANCIAL is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

REINET INVESTMENTS SCA

Risk-Adjusted Performance

Very Weak

Over the last 90 days REINET INVESTMENTS SCA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with COREBRIDGE FINANCIAL and REINET INVESTMENTS

The main advantage of trading using opposite COREBRIDGE FINANCIAL and REINET INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COREBRIDGE FINANCIAL position performs unexpectedly, REINET INVESTMENTS 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 REINET INVESTMENTS will offset losses from the drop in REINET INVESTMENTS's long position.

The idea behind COREBRIDGE FINANCIAL INC and REINET INVESTMENTS SCA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.