Correlation Between Maiden Holdings and Ladenburg Thalmann
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Ladenburg Thalmann 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 Ladenburg Thalmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings North and Ladenburg Thalmann Financial, you can compare the effects of market volatilities on Maiden Holdings and Ladenburg Thalmann 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 Ladenburg Thalmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Ladenburg Thalmann.
Diversification Opportunities for Maiden Holdings and Ladenburg Thalmann
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maiden and Ladenburg is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings North and Ladenburg Thalmann Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Thalmann 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 North are associated (or correlated) with Ladenburg Thalmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Thalmann has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Ladenburg Thalmann go up and down completely randomly.
Pair Corralation between Maiden Holdings and Ladenburg Thalmann
If you would invest 1,710 in Ladenburg Thalmann Financial on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Ladenburg Thalmann Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Maiden Holdings North vs. Ladenburg Thalmann Financial
Performance |
| Timeline |
| Maiden Holdings North |
| Ladenburg Thalmann |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maiden Holdings and Ladenburg Thalmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Ladenburg Thalmann
The main advantage of trading using opposite Maiden Holdings and Ladenburg Thalmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Ladenburg Thalmann 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 Ladenburg Thalmann will offset losses from the drop in Ladenburg Thalmann's long position.| Maiden Holdings vs. Maiden Holdings | Maiden Holdings vs. Affiliated Managers Group | Maiden Holdings vs. Entergy New Orleans | Maiden Holdings vs. American Financial Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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