Correlation Between Huize Holding and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Huize Holding 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 Huize Holding and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huize Holding and Maiden Holdings, you can compare the effects of market volatilities on Huize Holding 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 Huize Holding with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huize Holding and Maiden Holdings.
Diversification Opportunities for Huize Holding and Maiden Holdings
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huize and Maiden is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Huize Holding and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Huize Holding 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 Huize Holding 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 Huize Holding i.e., Huize Holding and Maiden Holdings go up and down completely randomly.
Pair Corralation between Huize Holding and Maiden Holdings
Given the investment horizon of 90 days Huize Holding is expected to under-perform the Maiden Holdings. In addition to that, Huize Holding is 1.59 times more volatile than Maiden Holdings. It trades about -0.03 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huize Holding vs. Maiden Holdings
Performance |
| Timeline |
| Huize Holding |
| Maiden Holdings |
Huize Holding and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huize Holding and Maiden Holdings
The main advantage of trading using opposite Huize Holding and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huize Holding 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.| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding vs. eHealth |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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