Correlation Between Maiden Holdings and SOUTHERN
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By analyzing existing cross correlation between Maiden Holdings and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Maiden Holdings and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and SOUTHERN.
Diversification Opportunities for Maiden Holdings and SOUTHERN
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maiden and SOUTHERN is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and SOUTHERN go up and down completely randomly.
Pair Corralation between Maiden Holdings and SOUTHERN
Given the investment horizon of 90 days Maiden Holdings is expected to generate 1.96 times more return on investment than SOUTHERN. However, Maiden Holdings is 1.96 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.05 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.06 per unit of risk. If you would invest 1,497 in Maiden Holdings on September 4, 2024 and sell it today you would earn a total of 143.00 from holding Maiden Holdings or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.8% |
| Values | Daily Returns |
Maiden Holdings vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Maiden Holdings |
| SOUTHERN CALIF EDISON |
Maiden Holdings and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and SOUTHERN
The main advantage of trading using opposite Maiden Holdings and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN'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 |
| SOUTHERN vs. Braskem SA Class | SOUTHERN vs. Maiden Holdings | SOUTHERN vs. Aegon NV ADR | SOUTHERN vs. Ecovyst |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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