Correlation Between Maiden Holdings and Summa Silver
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Summa Silver 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 Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Summa Silver Corp, you can compare the effects of market volatilities on Maiden Holdings and Summa Silver 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 Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Summa Silver.
Diversification Opportunities for Maiden Holdings and Summa Silver
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maiden and Summa is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Summa Silver go up and down completely randomly.
Pair Corralation between Maiden Holdings and Summa Silver
Given the investment horizon of 90 days Maiden Holdings is expected to generate 0.32 times more return on investment than Summa Silver. However, Maiden Holdings is 3.08 times less risky than Summa Silver. It trades about -0.12 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.38 per unit of risk. If you would invest 1,738 in Maiden Holdings on August 31, 2024 and sell it today you would lose (63.00) from holding Maiden Holdings or give up 3.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maiden Holdings vs. Summa Silver Corp
Performance |
| Timeline |
| Maiden Holdings |
| Summa Silver Corp |
Maiden Holdings and Summa Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Summa Silver
The main advantage of trading using opposite Maiden Holdings and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Summa Silver 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 Summa Silver will offset losses from the drop in Summa Silver'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 |
| Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol Resources |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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