Correlation Between Structured Products and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Structured Products 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 Structured Products and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Structured Products Corp and Maiden Holdings North, you can compare the effects of market volatilities on Structured Products 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 Structured Products with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Structured Products and Maiden Holdings.
Diversification Opportunities for Structured Products and Maiden Holdings
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Structured and Maiden is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Structured Products Corp and Maiden Holdings North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings North and Structured Products 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 Structured Products Corp 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 North has no effect on the direction of Structured Products i.e., Structured Products and Maiden Holdings go up and down completely randomly.
Pair Corralation between Structured Products and Maiden Holdings
Considering the 90-day investment horizon Structured Products is expected to generate 2.28 times less return on investment than Maiden Holdings. But when comparing it to its historical volatility, Structured Products Corp is 1.06 times less risky than Maiden Holdings. It trades about 0.02 of its potential returns per unit of risk. Maiden Holdings North is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,369 in Maiden Holdings North on August 30, 2024 and sell it today you would earn a total of 351.00 from holding Maiden Holdings North or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.7% |
| Values | Daily Returns |
Structured Products Corp vs. Maiden Holdings North
Performance |
| Timeline |
| Structured Products Corp |
| Maiden Holdings North |
Structured Products and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Structured Products and Maiden Holdings
The main advantage of trading using opposite Structured Products and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Structured Products 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.| Structured Products vs. Credit Enhanced Corts | Structured Products vs. Strats Trust Cellular | Structured Products vs. Goldman Sachs Capital | Structured Products vs. STRATS SM Trust |
| Maiden Holdings vs. Invesco High Income | Maiden Holdings vs. Blackrock Muniholdings Ny | Maiden Holdings vs. Nuveen California Select | Maiden Holdings vs. MFS Investment Grade |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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