Correlation Between RENEWI and HAL Trust

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

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

Diversification Opportunities for RENEWI and HAL Trust

-0.74

Correlation Coefficient

RENEWI  HAL Trust

Pay attention - limited upside

The 3 months correlation between RENEWI and HAL is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding RENEWI and HAL Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAL Trust 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 HAL Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAL Trust has no effect on the direction of RENEWI i.e., RENEWI and HAL Trust go up and down completely randomly.

Pair Corralation between RENEWI and HAL Trust

Assuming the 90 days trading horizon RENEWI is expected to under-perform the HAL Trust. In addition to that, RENEWI is 16.84 times more volatile than HAL Trust. It trades about -0.12 of its total potential returns per unit of risk. HAL Trust is currently generating about 0.18 per unit of volatility. If you would invest  11,441  in HAL Trust on May 1, 2025 and sell it today you would earn a total of  1,039  from holding HAL Trust or generate 9.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

RENEWI  vs.  HAL Trust

RENEWI

Risk-Adjusted Performance

Very Weak

Over the last 90 days RENEWI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

HAL Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 14 (%) 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.

Pair Trading with RENEWI and HAL Trust

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

The idea behind RENEWI and HAL Trust 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.