Correlation Between MHLD Old and Renaissancere Holdings

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

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

Diversification Opportunities for MHLD Old and Renaissancere Holdings

-0.19

Correlation Coefficient

MHLD Old  Renaissancere Holdings

Good diversification

The 3 months correlation between MHLD and Renaissancere is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding MHLD Old and Renaissancere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renaissancere Holdings and MHLD Old 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 MHLD Old are associated (or correlated) with Renaissancere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renaissancere Holdings has no effect on the direction of MHLD Old i.e., MHLD Old and Renaissancere Holdings go up and down completely randomly.

Pair Corralation between MHLD Old and Renaissancere Holdings

Given the investment horizon of 90 days MHLD Old is expected to under-perform the Renaissancere Holdings. In addition to that, MHLD Old is 4.03 times more volatile than Renaissancere Holdings. It trades about -0.1 of its total potential returns per unit of risk. Renaissancere Holdings is currently generating about -0.03 per unit of volatility. If you would invest  24,774  in Renaissancere Holdings on May 7, 2025 and sell it today you would lose (744.00) from holding Renaissancere Holdings or give up 3.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	24.19%
Values	Daily Returns

MHLD Old  vs.  Renaissancere Holdings

MHLD Old

Risk-Adjusted Performance

Weakest

Over the last 90 days MHLD Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Renaissancere Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Renaissancere Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Renaissancere Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with MHLD Old and Renaissancere Holdings

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

The idea behind MHLD Old and Renaissancere Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.