Correlation Between Maiden Holdings and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Associated Capital 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 Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Associated Capital Group, you can compare the effects of market volatilities on Maiden Holdings and Associated Capital 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 Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Associated Capital.
Diversification Opportunities for Maiden Holdings and Associated Capital
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maiden and Associated is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital 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 Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Associated Capital go up and down completely randomly.
Pair Corralation between Maiden Holdings and Associated Capital
Given the investment horizon of 90 days Maiden Holdings is expected to generate 4.18 times more return on investment than Associated Capital. However, Maiden Holdings is 4.18 times more volatile than Associated Capital Group. It trades about 0.1 of its potential returns per unit of risk. Associated Capital Group is currently generating about -0.17 per unit of risk. If you would invest 193.00 in Maiden Holdings on January 21, 2024 and sell it today you would earn a total of 16.00 from holding Maiden Holdings or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Maiden Holdings vs. Associated Capital Group
Performance |
| Timeline |
| Maiden Holdings |
| Associated Capital |
Maiden Holdings and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Associated Capital
The main advantage of trading using opposite Maiden Holdings and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| Maiden Holdings vs. SiriusPoint | Maiden Holdings vs. Aspen Insurance Holdings | Maiden Holdings vs. Aspen Insurance Holdings | Maiden Holdings vs. Aspen Insurance Holdings |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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