Correlation Between Maiden Holdings and Affiliated Managers
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Affiliated Managers 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 Affiliated Managers 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 Affiliated Managers Group, you can compare the effects of market volatilities on Maiden Holdings and Affiliated Managers 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 Affiliated Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Affiliated Managers.
Diversification Opportunities for Maiden Holdings and Affiliated Managers
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maiden and Affiliated is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings North and Affiliated Managers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Managers 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 Affiliated Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Managers has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Affiliated Managers go up and down completely randomly.
Pair Corralation between Maiden Holdings and Affiliated Managers
Given the investment horizon of 90 days Maiden Holdings North is expected to under-perform the Affiliated Managers. In addition to that, Maiden Holdings is 2.65 times more volatile than Affiliated Managers Group. It trades about -0.17 of its total potential returns per unit of risk. Affiliated Managers Group is currently generating about -0.33 per unit of volatility. If you would invest 2,491 in Affiliated Managers Group on August 30, 2024 and sell it today you would lose (124.00) from holding Affiliated Managers Group or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings North vs. Affiliated Managers Group
Performance |
| Timeline |
| Maiden Holdings North |
| Affiliated Managers |
Maiden Holdings and Affiliated Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Affiliated Managers
The main advantage of trading using opposite Maiden Holdings and Affiliated Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Affiliated Managers 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 Affiliated Managers will offset losses from the drop in Affiliated Managers' long position.| Maiden Holdings vs. Invesco High Income | Maiden Holdings vs. Blackrock Muniholdings Ny | Maiden Holdings vs. Nuveen California Select | Maiden Holdings vs. MFS Investment Grade |
| Affiliated Managers vs. DBA Sempra 5750 | Affiliated Managers vs. CMS Energy Corp | Affiliated Managers vs. American Financial Group | Affiliated Managers vs. National Rural Utilities |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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