Correlation Between Maiden Holdings and Weyco
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Weyco 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 Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Weyco Group, you can compare the effects of market volatilities on Maiden Holdings and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Weyco.
Diversification Opportunities for Maiden Holdings and Weyco
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maiden and Weyco is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Weyco go up and down completely randomly.
Pair Corralation between Maiden Holdings and Weyco
Given the investment horizon of 90 days Maiden Holdings is expected to generate 0.67 times more return on investment than Weyco. However, Maiden Holdings is 1.49 times less risky than Weyco. It trades about -0.28 of its potential returns per unit of risk. Weyco Group is currently generating about -0.23 per unit of risk. If you would invest 1,742 in Maiden Holdings on September 12, 2024 and sell it today you would lose (145.00) from holding Maiden Holdings or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Weyco Group
Performance |
| Timeline |
| Maiden Holdings |
| Weyco Group |
Maiden Holdings and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Weyco
The main advantage of trading using opposite Maiden Holdings and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |