Correlation Between Maiden Holdings and Greenlight Capital
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Greenlight 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 Greenlight 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 Greenlight Capital Re, you can compare the effects of market volatilities on Maiden Holdings and Greenlight 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 Greenlight Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Greenlight Capital.
Diversification Opportunities for Maiden Holdings and Greenlight Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maiden and Greenlight is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Greenlight Capital Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight 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 Greenlight Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Capital has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Greenlight Capital go up and down completely randomly.
Pair Corralation between Maiden Holdings and Greenlight Capital
Given the investment horizon of 90 days Maiden Holdings is expected to generate 3.3 times more return on investment than Greenlight Capital. However, Maiden Holdings is 3.3 times more volatile than Greenlight Capital Re. It trades about 0.14 of its potential returns per unit of risk. Greenlight Capital Re is currently generating about 0.14 per unit of risk. If you would invest 194.00 in Maiden Holdings on January 26, 2024 and sell it today you would earn a total of 24.00 from holding Maiden Holdings or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Greenlight Capital Re
Performance |
| Timeline |
| Maiden Holdings |
| Greenlight Capital |
Maiden Holdings and Greenlight Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Greenlight Capital
The main advantage of trading using opposite Maiden Holdings and Greenlight Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Greenlight 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 Greenlight Capital will offset losses from the drop in Greenlight 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 |
| Greenlight Capital vs. SiriusPoint | Greenlight Capital vs. Aspen Insurance Holdings | Greenlight Capital vs. Aspen Insurance Holdings | Greenlight Capital vs. Aspen Insurance 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |