Correlation Between HAL Trust and Reinet Investments

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

By analyzing existing cross correlation between HAL Trust and Reinet Investments SCA, you can compare the effects of market volatilities on HAL Trust 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 HAL Trust with a short position of Reinet Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and Reinet Investments.

Diversification Opportunities for HAL Trust and Reinet Investments

0.74

Correlation Coefficient

HAL Trust  Reinet Investments

Poor diversification

The 3 months correlation between HAL and Reinet is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust 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 HAL Trust 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 HAL Trust 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 HAL Trust i.e., HAL Trust and Reinet Investments go up and down completely randomly.

Pair Corralation between HAL Trust and Reinet Investments

Assuming the 90 days trading horizon HAL Trust is expected to generate 1.9 times less return on investment than Reinet Investments. But when comparing it to its historical volatility, HAL Trust is 6.02 times less risky than Reinet Investments. It trades about 0.23 of its potential returns per unit of risk. Reinet Investments SCA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,220  in Reinet Investments SCA on April 20, 2025 and sell it today you would earn a total of  360.00  from holding Reinet Investments SCA or generate 16.22% return on investment over 90 days.

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

HAL Trust  vs.  Reinet Investments SCA

HAL Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, HAL Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Reinet Investments SCA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Reinet Investments SCA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Reinet Investments sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HAL Trust and Reinet Investments

The main advantage of trading using opposite HAL Trust and Reinet Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAL Trust 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' long position.

The idea behind HAL Trust 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.