Correlation Between Maiden Holdings and Oxbridge
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Oxbridge 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 Oxbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Oxbridge Re Holdings, you can compare the effects of market volatilities on Maiden Holdings and Oxbridge 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 Oxbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Oxbridge.
Diversification Opportunities for Maiden Holdings and Oxbridge
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maiden and Oxbridge is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Oxbridge Re Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Re Holdings 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 Oxbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Re Holdings has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Oxbridge go up and down completely randomly.
Pair Corralation between Maiden Holdings and Oxbridge
Given the investment horizon of 90 days Maiden Holdings is expected to generate 1.68 times more return on investment than Oxbridge. However, Maiden Holdings is 1.68 times more volatile than Oxbridge Re Holdings. It trades about 0.14 of its potential returns per unit of risk. Oxbridge Re Holdings is currently generating about 0.01 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Oxbridge Re Holdings
Performance |
| Timeline |
| Maiden Holdings |
| Oxbridge Re Holdings |
Maiden Holdings and Oxbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Oxbridge
The main advantage of trading using opposite Maiden Holdings and Oxbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Oxbridge 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 Oxbridge will offset losses from the drop in Oxbridge's long position.| Maiden Holdings vs. Hamilton Insurance Group | Maiden Holdings vs. SiriusPoint | Maiden Holdings vs. Aspen Insurance Holdings | Maiden Holdings vs. Aspen Insurance Holdings |
| Oxbridge vs. Hamilton Insurance Group | Oxbridge vs. SiriusPoint | Oxbridge vs. Aspen Insurance Holdings | Oxbridge 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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