Correlation Between Maiden Holdings and C3 Ai
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and C3 Ai 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 C3 Ai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and C3 Ai Inc, you can compare the effects of market volatilities on Maiden Holdings and C3 Ai 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 C3 Ai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and C3 Ai.
Diversification Opportunities for Maiden Holdings and C3 Ai
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maiden and C3 Ai is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and C3 Ai Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3 Ai Inc 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 C3 Ai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3 Ai Inc has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and C3 Ai go up and down completely randomly.
Pair Corralation between Maiden Holdings and C3 Ai
Given the investment horizon of 90 days Maiden Holdings is expected to generate 1.06 times more return on investment than C3 Ai. However, Maiden Holdings is 1.06 times more volatile than C3 Ai Inc. It trades about 0.06 of its potential returns per unit of risk. C3 Ai Inc is currently generating about -0.01 per unit of risk. If you would invest 166.00 in Maiden Holdings on January 18, 2024 and sell it today you would earn a total of 35.00 from holding Maiden Holdings or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. C3 Ai Inc
Performance |
| Timeline |
| Maiden Holdings |
| C3 Ai Inc |
Maiden Holdings and C3 Ai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and C3 Ai
The main advantage of trading using opposite Maiden Holdings and C3 Ai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, C3 Ai 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 C3 Ai will offset losses from the drop in C3 Ai's long position.| Maiden Holdings vs. Oxbridge Re Holdings | Maiden Holdings vs. Aspen Insurance Holdings | Maiden Holdings vs. RenaissanceRe Holdings | Maiden Holdings vs. RenaissanceRe Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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