Correlation Between Maiden Holdings and Gamer Pakistan
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Gamer Pakistan 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 Gamer Pakistan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Gamer Pakistan Common, you can compare the effects of market volatilities on Maiden Holdings and Gamer Pakistan 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 Gamer Pakistan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Gamer Pakistan.
Diversification Opportunities for Maiden Holdings and Gamer Pakistan
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maiden and Gamer is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Gamer Pakistan Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamer Pakistan Common 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 Gamer Pakistan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamer Pakistan Common has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Gamer Pakistan go up and down completely randomly.
Pair Corralation between Maiden Holdings and Gamer Pakistan
If you would invest 1.60 in Gamer Pakistan Common on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Gamer Pakistan Common or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Maiden Holdings vs. Gamer Pakistan Common
Performance |
| Timeline |
| Maiden Holdings |
| Gamer Pakistan Common |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maiden Holdings and Gamer Pakistan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Gamer Pakistan
The main advantage of trading using opposite Maiden Holdings and Gamer Pakistan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Gamer Pakistan 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 Gamer Pakistan will offset losses from the drop in Gamer Pakistan'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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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