Correlation Between Maiden Holdings and 654106AJ2
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By analyzing existing cross correlation between Maiden Holdings and NIKE INC, you can compare the effects of market volatilities on Maiden Holdings and 654106AJ2 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 654106AJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and 654106AJ2.
Diversification Opportunities for Maiden Holdings and 654106AJ2
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maiden and 654106AJ2 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and NIKE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 654106AJ2 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 654106AJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 654106AJ2 has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and 654106AJ2 go up and down completely randomly.
Pair Corralation between Maiden Holdings and 654106AJ2
Given the investment horizon of 90 days Maiden Holdings is expected to under-perform the 654106AJ2. In addition to that, Maiden Holdings is 1.92 times more volatile than NIKE INC. It trades about -0.17 of its total potential returns per unit of risk. NIKE INC is currently generating about -0.18 per unit of volatility. If you would invest 9,623 in NIKE INC on September 2, 2024 and sell it today you would lose (244.00) from holding NIKE INC or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. NIKE INC
Performance |
| Timeline |
| Maiden Holdings |
| 654106AJ2 |
Maiden Holdings and 654106AJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and 654106AJ2
The main advantage of trading using opposite Maiden Holdings and 654106AJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, 654106AJ2 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 654106AJ2 will offset losses from the drop in 654106AJ2'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 |
| 654106AJ2 vs. AEP TEX INC | 654106AJ2 vs. US BANK NATIONAL | 654106AJ2 vs. Bank of America | 654106AJ2 vs. GE Aerospace |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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