Correlation Between Maiden Holdings and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Siriuspoint, you can compare the effects of market volatilities on Maiden Holdings and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Siriuspoint.
Diversification Opportunities for Maiden Holdings and Siriuspoint
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maiden and Siriuspoint is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Siriuspoint go up and down completely randomly.
Pair Corralation between Maiden Holdings and Siriuspoint
Given the investment horizon of 90 days Maiden Holdings is expected to generate 3.5 times less return on investment than Siriuspoint. In addition to that, Maiden Holdings is 1.35 times more volatile than Siriuspoint. It trades about 0.02 of its total potential returns per unit of risk. Siriuspoint is currently generating about 0.11 per unit of volatility. If you would invest 614.00 in Siriuspoint on August 28, 2024 and sell it today you would earn a total of 946.00 from holding Siriuspoint or generate 154.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.69% |
| Values | Daily Returns |
Maiden Holdings vs. Siriuspoint
Performance |
| Timeline |
| Maiden Holdings |
| Siriuspoint |
Maiden Holdings and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Siriuspoint
The main advantage of trading using opposite Maiden Holdings and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint'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 |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |