Correlation Between Cuentas and Reliance Global

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

By analyzing existing cross correlation between Cuentas and Reliance Global Group, you can compare the effects of market volatilities on Cuentas and Reliance Global 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 Cuentas with a short position of Reliance Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuentas and Reliance Global.

Diversification Opportunities for Cuentas and Reliance Global

0.0

Correlation Coefficient

Cuentas  Reliance Global

Pay attention - limited upside

The 3 months correlation between Cuentas and Reliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cuentas and Reliance Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Global Group and Cuentas 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 Cuentas are associated (or correlated) with Reliance Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Global Group has no effect on the direction of Cuentas i.e., Cuentas and Reliance Global go up and down completely randomly.

Pair Corralation between Cuentas and Reliance Global

If you would invest  4.02  in Reliance Global Group on December 30, 2024 and sell it today you would lose (2.18) from holding Reliance Global Group or give up 54.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cuentas  vs.  Reliance Global Group

Cuentas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cuentas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Cuentas is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Reliance Global Group

Risk-Adjusted Performance

OK

Over the last 90 days Reliance Global Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal forward indicators, Reliance Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cuentas and Reliance Global

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

The idea behind Cuentas and Reliance Global Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.