Correlation Between Maiden Holdings and Blue Capital
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Blue 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 Blue 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 Blue Capital Reinsurance, you can compare the effects of market volatilities on Maiden Holdings and Blue 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 Blue Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Blue Capital.
Diversification Opportunities for Maiden Holdings and Blue Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maiden and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Blue Capital Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Capital Reinsurance 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 Blue Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Capital Reinsurance has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Blue Capital go up and down completely randomly.
Pair Corralation between Maiden Holdings and Blue Capital
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Maiden Holdings vs. Blue Capital Reinsurance
Performance |
| Timeline |
| Maiden Holdings |
| Blue Capital Reinsurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maiden Holdings and Blue Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Blue Capital
The main advantage of trading using opposite Maiden Holdings and Blue Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Blue 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 Blue Capital will offset losses from the drop in Blue Capital's long position.| Maiden Holdings vs. RenaissanceRe Holdings | Maiden Holdings vs. PartnerRe | Maiden Holdings vs. SCOR PK | Maiden Holdings vs. SiriusPoint |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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