Correlation Between Maiden Holdings and AllianceBernstein
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and AllianceBernstein 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 Maiden Holdings and AllianceBernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and AllianceBernstein Holding LP, you can compare the effects of market volatilities on Maiden Holdings and AllianceBernstein 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 Maiden Holdings with a short position of AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and AllianceBernstein.
Diversification Opportunities for Maiden Holdings and AllianceBernstein
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maiden and AllianceBernstein is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein and Maiden Holdings 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 Maiden Holdings are associated (or correlated) with AllianceBernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianceBernstein has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and AllianceBernstein go up and down completely randomly.
Pair Corralation between Maiden Holdings and AllianceBernstein
Given the investment horizon of 90 days Maiden Holdings is expected to generate 2.7 times more return on investment than AllianceBernstein. However, Maiden Holdings is 2.7 times more volatile than AllianceBernstein Holding LP. It trades about 0.01 of its potential returns per unit of risk. AllianceBernstein Holding LP is currently generating about 0.01 per unit of risk. If you would invest 210.00 in Maiden Holdings on January 19, 2024 and sell it today you would lose (15.00) from holding Maiden Holdings or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. AllianceBernstein Holding LP
Performance |
| Timeline |
| Maiden Holdings |
| AllianceBernstein |
Maiden Holdings and AllianceBernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and AllianceBernstein
The main advantage of trading using opposite Maiden Holdings and AllianceBernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, AllianceBernstein 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 AllianceBernstein will offset losses from the drop in AllianceBernstein's long position.| Maiden Holdings vs. RenaissanceRe Holdings | Maiden Holdings vs. PartnerRe | Maiden Holdings vs. SCOR PK | Maiden Holdings vs. SiriusPoint |
| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
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.
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