Correlation Between Maiden Holdings and ANDINA BOTTLING
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and ANDINA BOTTLING 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 Maiden Holdings and ANDINA BOTTLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and ANDINA BOTTLING INC, you can compare the effects of market volatilities on Maiden Holdings and ANDINA BOTTLING 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 Maiden Holdings with a short position of ANDINA BOTTLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and ANDINA BOTTLING.
Diversification Opportunities for Maiden Holdings and ANDINA BOTTLING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maiden and ANDINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and ANDINA BOTTLING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDINA BOTTLING INC and Maiden Holdings 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 Maiden Holdings are associated (or correlated) with ANDINA BOTTLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDINA BOTTLING INC has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and ANDINA BOTTLING go up and down completely randomly.
Pair Corralation between Maiden Holdings and ANDINA BOTTLING
If you would invest (100.00) in ANDINA BOTTLING INC on August 31, 2024 and sell it today you would earn a total of 100.00 from holding ANDINA BOTTLING INC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Maiden Holdings vs. ANDINA BOTTLING INC
Performance |
| Timeline |
| Maiden Holdings |
| ANDINA BOTTLING INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maiden Holdings and ANDINA BOTTLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and ANDINA BOTTLING
The main advantage of trading using opposite Maiden Holdings and ANDINA BOTTLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, ANDINA BOTTLING 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 ANDINA BOTTLING will offset losses from the drop in ANDINA BOTTLING's long position.| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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