Correlation Between Mnchener Rckversicherungs and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Mnchener Rckversicherungs and Maiden Holdings 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 Mnchener Rckversicherungs and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mnchener Rckversicherungs Gesellschaft Aktiengesellschaft and Maiden Holdings, you can compare the effects of market volatilities on Mnchener Rckversicherungs and Maiden Holdings 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 Mnchener Rckversicherungs with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mnchener Rckversicherungs and Maiden Holdings.
Diversification Opportunities for Mnchener Rckversicherungs and Maiden Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mnchener and Maiden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mnchener Rckversicherungs Gese and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Mnchener Rckversicherungs 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 Mnchener Rckversicherungs Gesellschaft Aktiengesellschaft are associated (or correlated) with Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Mnchener Rckversicherungs i.e., Mnchener Rckversicherungs and Maiden Holdings go up and down completely randomly.
Pair Corralation between Mnchener Rckversicherungs and Maiden Holdings
Assuming the 90 days horizon Mnchener Rckversicherungs Gesellschaft Aktiengesellschaft is expected to generate 0.29 times more return on investment than Maiden Holdings. However, Mnchener Rckversicherungs Gesellschaft Aktiengesellschaft is 3.39 times less risky than Maiden Holdings. It trades about 0.18 of its potential returns per unit of risk. Maiden Holdings is currently generating about -0.27 per unit of risk. If you would invest 49,877 in Mnchener Rckversicherungs Gesellschaft Aktiengesellschaft on September 13, 2024 and sell it today you would earn a total of 2,123 from holding Mnchener Rckversicherungs Gesellschaft Aktiengesellschaft or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mnchener Rckversicherungs Gese vs. Maiden Holdings
Performance |
| Timeline |
| Mnchener Rckversicherungs |
| Maiden Holdings |
Mnchener Rckversicherungs and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mnchener Rckversicherungs and Maiden Holdings
The main advantage of trading using opposite Mnchener Rckversicherungs and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mnchener Rckversicherungs position performs unexpectedly, Maiden Holdings 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 Maiden Holdings will offset losses from the drop in Maiden Holdings' long position.| Mnchener Rckversicherungs vs. Maiden Holdings | Mnchener Rckversicherungs vs. Renaissancere Holdings | Mnchener Rckversicherungs vs. Greenlight Capital Re | Mnchener Rckversicherungs vs. Reinsurance Group of |
| Maiden Holdings vs. Siriuspoint | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Oxbridge Re Holdings | Maiden Holdings vs. Greenlight Capital Re |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |