Correlation Between Maiden Holdings and Swiss Re
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Swiss Re 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 Swiss Re into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Swiss Re, you can compare the effects of market volatilities on Maiden Holdings and Swiss Re 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 Swiss Re. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Swiss Re.
Diversification Opportunities for Maiden Holdings and Swiss Re
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maiden and Swiss is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Swiss Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Re 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 Swiss Re. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Re has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Swiss Re go up and down completely randomly.
Pair Corralation between Maiden Holdings and Swiss Re
Given the investment horizon of 90 days Maiden Holdings is expected to generate 3.16 times less return on investment than Swiss Re. In addition to that, Maiden Holdings is 2.31 times more volatile than Swiss Re. It trades about 0.03 of its total potential returns per unit of risk. Swiss Re is currently generating about 0.25 per unit of volatility. If you would invest 3,261 in Swiss Re on August 27, 2024 and sell it today you would earn a total of 341.00 from holding Swiss Re or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Swiss Re
Performance |
| Timeline |
| Maiden Holdings |
| Swiss Re |
Maiden Holdings and Swiss Re Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Swiss Re
The main advantage of trading using opposite Maiden Holdings and Swiss Re positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Swiss Re 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 Swiss Re will offset losses from the drop in Swiss Re'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 |
| Swiss Re vs. Invesco High Income | Swiss Re vs. Blackrock Muniholdings Ny | Swiss Re vs. MFS Investment Grade | Swiss Re vs. Federated Premier Municipal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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