Correlation Between Distoken Acquisition and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition 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 Distoken Acquisition and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and Maiden Holdings, you can compare the effects of market volatilities on Distoken Acquisition 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 Distoken Acquisition with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and Maiden Holdings.
Diversification Opportunities for Distoken Acquisition and Maiden Holdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Distoken and Maiden is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition i.e., Distoken Acquisition and Maiden Holdings go up and down completely randomly.
Pair Corralation between Distoken Acquisition and Maiden Holdings
Assuming the 90 days horizon Distoken Acquisition is expected to under-perform the Maiden Holdings. In addition to that, Distoken Acquisition is 8.14 times more volatile than Maiden Holdings. It trades about -0.09 of its total potential returns per unit of risk. Maiden Holdings is currently generating about 0.12 per unit of volatility. If you would invest 1,451 in Maiden Holdings on November 9, 2024 and sell it today you would earn a total of 76.00 from holding Maiden Holdings or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.0% |
| Values | Daily Returns |
Distoken Acquisition vs. Maiden Holdings
Performance |
| Timeline |
| Distoken Acquisition |
| Maiden Holdings |
Distoken Acquisition and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and Maiden Holdings
The main advantage of trading using opposite Distoken Acquisition and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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.| Distoken Acquisition vs. Voyager Acquisition Corp | Distoken Acquisition vs. dMY Squared Technology | Distoken Acquisition vs. YHN Acquisition I | Distoken Acquisition vs. YHN Acquisition I |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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