Correlation Between Maiden Holdings and Zoom Video
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Zoom Video 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 Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Zoom Video Communications, you can compare the effects of market volatilities on Maiden Holdings and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Zoom Video.
Diversification Opportunities for Maiden Holdings and Zoom Video
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maiden and Zoom is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Zoom Video go up and down completely randomly.
Pair Corralation between Maiden Holdings and Zoom Video
Given the investment horizon of 90 days Maiden Holdings is expected to generate 1.19 times more return on investment than Zoom Video. However, Maiden Holdings is 1.19 times more volatile than Zoom Video Communications. It trades about 0.03 of its potential returns per unit of risk. Zoom Video Communications is currently generating about 0.03 per unit of risk. If you would invest 1,351 in Maiden Holdings on August 30, 2024 and sell it today you would earn a total of 356.00 from holding Maiden Holdings or generate 26.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Maiden Holdings vs. Zoom Video Communications
Performance |
| Timeline |
| Maiden Holdings |
| Zoom Video Communications |
Maiden Holdings and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Zoom Video
The main advantage of trading using opposite Maiden Holdings and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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