Correlation Between Reinet Investments and SPEAR Investments

Can any of the company-specific risk be diversified away by investing in both Reinet Investments and SPEAR 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 Reinet Investments and SPEAR Investments 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 SPEAR Investments I, you can compare the effects of market volatilities on Reinet Investments and SPEAR 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 Reinet Investments with a short position of SPEAR Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinet Investments and SPEAR Investments.

Diversification Opportunities for Reinet Investments and SPEAR Investments

0.0

Correlation Coefficient

Reinet Investments  SPEAR Investments

Pay attention - limited upside

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

Pair Corralation between Reinet Investments and SPEAR Investments

If you would invest  2,525  in Reinet Investments SCA on July 31, 2025 and sell it today you would earn a total of  255.00  from holding Reinet Investments SCA or generate 10.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Reinet Investments SCA  vs.  SPEAR Investments I

Reinet Investments SCA

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Reinet Investments SCA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Reinet Investments may actually be approaching a critical reversion point that can send shares even higher in November 2025.

SPEAR Investments

Risk-Adjusted Performance

Weakest

Over the last 90 days SPEAR Investments I has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SPEAR Investments is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Reinet Investments and SPEAR Investments

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

The idea behind Reinet Investments SCA and SPEAR Investments I 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.