Correlation Between Reinet Investments and Robeco Sust

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

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

Diversification Opportunities for Reinet Investments and Robeco Sust

0.65

Correlation Coefficient

Reinet Investments  Robeco Sust

Poor diversification

The 3 months correlation between Reinet and Robeco is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Reinet Investments SCA and Robeco Sust Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robeco Sust Global and Reinet Investments 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 Reinet Investments SCA are associated (or correlated) with Robeco Sust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robeco Sust Global has no effect on the direction of Reinet Investments i.e., Reinet Investments and Robeco Sust go up and down completely randomly.

Pair Corralation between Reinet Investments and Robeco Sust

Assuming the 90 days trading horizon Reinet Investments SCA is expected to generate 5.99 times more return on investment than Robeco Sust. However, Reinet Investments is 5.99 times more volatile than Robeco Sust Global. It trades about 0.07 of its potential returns per unit of risk. Robeco Sust Global is currently generating about 0.25 per unit of risk. If you would invest  2,220  in Reinet Investments SCA on April 22, 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

Reinet Investments SCA  vs.  Robeco Sust Global

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.

Robeco Sust Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Robeco Sust Global are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Robeco Sust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Reinet Investments and Robeco Sust

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

The idea behind Reinet Investments SCA and Robeco Sust Global 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.