Correlation Between Maiden Holdings and Brookfield Reinsurance
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Brookfield Reinsurance 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 Brookfield Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Brookfield Reinsurance, you can compare the effects of market volatilities on Maiden Holdings and Brookfield Reinsurance 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 Brookfield Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Brookfield Reinsurance.
Diversification Opportunities for Maiden Holdings and Brookfield Reinsurance
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maiden and Brookfield is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Brookfield Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Reinsurance 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 Brookfield Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Reinsurance has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Brookfield Reinsurance go up and down completely randomly.
Pair Corralation between Maiden Holdings and Brookfield Reinsurance
If you would invest 164.00 in Maiden Holdings on August 27, 2024 and sell it today you would earn a total of 8.00 from holding Maiden Holdings or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Maiden Holdings vs. Brookfield Reinsurance
Performance |
| Timeline |
| Maiden Holdings |
| Brookfield Reinsurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maiden Holdings and Brookfield Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Brookfield Reinsurance
The main advantage of trading using opposite Maiden Holdings and Brookfield Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Brookfield Reinsurance 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 Brookfield Reinsurance will offset losses from the drop in Brookfield Reinsurance's long position.| Maiden Holdings vs. Siriuspoint | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Oxbridge Re Holdings | Maiden Holdings vs. Greenlight Capital Re |
| Brookfield Reinsurance vs. Maiden Holdings | Brookfield Reinsurance vs. Renaissancere Holdings | Brookfield Reinsurance vs. Greenlight Capital Re | Brookfield Reinsurance vs. Reinsurance Group of |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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