Correlation Between Maiden Holdings and Verra Mobility
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Verra Mobility 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 Verra Mobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Verra Mobility Corp, you can compare the effects of market volatilities on Maiden Holdings and Verra Mobility 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 Verra Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Verra Mobility.
Diversification Opportunities for Maiden Holdings and Verra Mobility
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maiden and Verra is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Verra Mobility Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verra Mobility 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 Verra Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verra Mobility Corp has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Verra Mobility go up and down completely randomly.
Pair Corralation between Maiden Holdings and Verra Mobility
Given the investment horizon of 90 days Maiden Holdings is expected to generate 1.07 times less return on investment than Verra Mobility. In addition to that, Maiden Holdings is 1.04 times more volatile than Verra Mobility Corp. It trades about 0.04 of its total potential returns per unit of risk. Verra Mobility Corp is currently generating about 0.05 per unit of volatility. If you would invest 1,957 in Verra Mobility Corp on September 4, 2024 and sell it today you would earn a total of 421.00 from holding Verra Mobility Corp or generate 21.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.24% |
| Values | Daily Returns |
Maiden Holdings vs. Verra Mobility Corp
Performance |
| Timeline |
| Maiden Holdings |
| Verra Mobility Corp |
Maiden Holdings and Verra Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Verra Mobility
The main advantage of trading using opposite Maiden Holdings and Verra Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Verra Mobility 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 Verra Mobility will offset losses from the drop in Verra Mobility'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 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |