Correlation Between Bleuacacia and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Bleuacacia 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 Bleuacacia and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bleuacacia ltd Rights and Maiden Holdings, you can compare the effects of market volatilities on Bleuacacia 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 Bleuacacia with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bleuacacia and Maiden Holdings.
Diversification Opportunities for Bleuacacia and Maiden Holdings
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bleuacacia and Maiden is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding bleuacacia ltd Rights and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Bleuacacia 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 bleuacacia ltd Rights 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 Bleuacacia i.e., Bleuacacia and Maiden Holdings go up and down completely randomly.
Pair Corralation between Bleuacacia and Maiden Holdings
Assuming the 90 days horizon bleuacacia ltd Rights is expected to generate 50.12 times more return on investment than Maiden Holdings. However, Bleuacacia is 50.12 times more volatile than Maiden Holdings. It trades about 0.19 of its potential returns per unit of risk. Maiden Holdings is currently generating about -0.04 per unit of risk. If you would invest 1.19 in bleuacacia ltd Rights on August 27, 2024 and sell it today you would lose (0.34) from holding bleuacacia ltd Rights or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bleuacacia ltd Rights vs. Maiden Holdings
Performance |
| Timeline |
| bleuacacia ltd Rights |
| Maiden Holdings |
Bleuacacia and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bleuacacia and Maiden Holdings
The main advantage of trading using opposite Bleuacacia and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bleuacacia 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.| Bleuacacia vs. Visa Class A | Bleuacacia vs. Distoken Acquisition | Bleuacacia vs. Deutsche Bank AG | Bleuacacia vs. Mastercard |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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