Correlation Between REINET INVESTMENTS and GEO
Can any of the company-specific risk be diversified away by investing in both REINET INVESTMENTS and GEO 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 GEO 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 The GEO Group, you can compare the effects of market volatilities on REINET INVESTMENTS and GEO 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 GEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of REINET INVESTMENTS and GEO.
Diversification Opportunities for REINET INVESTMENTS and GEO
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between REINET and GEO is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA and The GEO Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEO Group 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 GEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEO Group has no effect on the direction of REINET INVESTMENTS i.e., REINET INVESTMENTS and GEO go up and down completely randomly.
Pair Corralation between REINET INVESTMENTS and GEO
Assuming the 90 days horizon REINET INVESTMENTS SCA is expected to generate 1.42 times more return on investment than GEO. However, REINET INVESTMENTS is 1.42 times more volatile than The GEO Group. It trades about 0.04 of its potential returns per unit of risk. The GEO Group is currently generating about -0.18 per unit of risk. If you would invest 2,600 in REINET INVESTMENTS SCA on September 11, 2025 and sell it today you would earn a total of 160.00 from holding REINET INVESTMENTS SCA or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REINET INVESTMENTS SCA vs. The GEO Group
Performance |
| Timeline |
| REINET INVESTMENTS SCA |
| GEO Group |
REINET INVESTMENTS and GEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REINET INVESTMENTS and GEO
The main advantage of trading using opposite REINET INVESTMENTS and GEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS position performs unexpectedly, GEO 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 GEO will offset losses from the drop in GEO's long position.| REINET INVESTMENTS vs. Blackstone Group | REINET INVESTMENTS vs. The Bank of | REINET INVESTMENTS vs. Ameriprise Financial | REINET INVESTMENTS vs. State Street |
| GEO vs. Universal Insurance Holdings | GEO vs. Reinsurance Group of | GEO vs. UPDATE SOFTWARE | GEO vs. Sabre Insurance Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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