Correlation Between Maiden Holdings and First Republic
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and First Republic Bank, you can compare the effects of market volatilities on Maiden Holdings and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and First Republic.
Diversification Opportunities for Maiden Holdings and First Republic
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maiden and First is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and First Republic go up and down completely randomly.
Pair Corralation between Maiden Holdings and First Republic
If you would invest 1,697 in Maiden Holdings on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Maiden Holdings or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Maiden Holdings vs. First Republic Bank
Performance |
| Timeline |
| Maiden Holdings |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maiden Holdings and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and First Republic
The main advantage of trading using opposite Maiden Holdings and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic'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 |
| First Republic vs. Cincinnati Financial | First Republic vs. Fernhill Beverage | First Republic vs. National Beverage Corp | First Republic vs. QBE Insurance Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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