Correlation Between RENEWI and Corbion NV

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

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

Diversification Opportunities for RENEWI and Corbion NV

0.09

Correlation Coefficient

RENEWI  Corbion NV

Significant diversification

The 3 months correlation between RENEWI and Corbion is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding RENEWI and Corbion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corbion NV and RENEWI 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 RENEWI are associated (or correlated) with Corbion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corbion NV has no effect on the direction of RENEWI i.e., RENEWI and Corbion NV go up and down completely randomly.

Pair Corralation between RENEWI and Corbion NV

Assuming the 90 days trading horizon RENEWI is expected to generate 95.36 times more return on investment than Corbion NV. However, RENEWI is 95.36 times more volatile than Corbion NV. It trades about 0.11 of its potential returns per unit of risk. Corbion NV is currently generating about 0.09 per unit of risk. If you would invest  25.00  in RENEWI on April 20, 2025 and sell it today you would lose (5.00) from holding RENEWI or give up 20.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

RENEWI  vs.  Corbion NV

RENEWI

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RENEWI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, RENEWI unveiled solid returns over the last few months and may actually be approaching a breakup point.

Corbion NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Corbion NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Corbion NV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with RENEWI and Corbion NV

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

The idea behind RENEWI and Corbion NV 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.