Correlation Between Abacus Life, and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Abacus Life, and Maiden Holdings 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 Abacus Life, and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abacus Life, 9875 and Maiden Holdings, you can compare the effects of market volatilities on Abacus Life, and Maiden Holdings 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 Abacus Life, with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abacus Life, and Maiden Holdings.
Diversification Opportunities for Abacus Life, and Maiden Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abacus and Maiden is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Abacus Life, 9875 and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Abacus Life, 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 Abacus Life, 9875 are associated (or correlated) with Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Abacus Life, i.e., Abacus Life, and Maiden Holdings go up and down completely randomly.
Pair Corralation between Abacus Life, and Maiden Holdings
Assuming the 90 days horizon Abacus Life, 9875 is expected to generate 0.78 times more return on investment than Maiden Holdings. However, Abacus Life, 9875 is 1.29 times less risky than Maiden Holdings. It trades about 0.08 of its potential returns per unit of risk. Maiden Holdings is currently generating about -0.04 per unit of risk. If you would invest 2,580 in Abacus Life, 9875 on August 27, 2024 and sell it today you would earn a total of 44.00 from holding Abacus Life, 9875 or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abacus Life, 9875 vs. Maiden Holdings
Performance |
| Timeline |
| Abacus Life, 9875 |
| Maiden Holdings |
Abacus Life, and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abacus Life, and Maiden Holdings
The main advantage of trading using opposite Abacus Life, and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abacus Life, position performs unexpectedly, Maiden Holdings 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 Maiden Holdings will offset losses from the drop in Maiden Holdings' long position.| Abacus Life, vs. Xponential Fitness | Abacus Life, vs. Modine Manufacturing | Abacus Life, vs. Playtika Holding Corp | Abacus Life, vs. Aeye Inc |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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.
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