Correlation Between Muenchener Rueckver and Oxbridge
Can any of the company-specific risk be diversified away by investing in both Muenchener Rueckver and Oxbridge 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 Muenchener Rueckver and Oxbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muenchener Rueckver Ges and Oxbridge Re Holdings, you can compare the effects of market volatilities on Muenchener Rueckver and Oxbridge 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 Muenchener Rueckver with a short position of Oxbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muenchener Rueckver and Oxbridge.
Diversification Opportunities for Muenchener Rueckver and Oxbridge
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Muenchener and Oxbridge is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Muenchener Rueckver Ges and Oxbridge Re Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Re Holdings and Muenchener Rueckver 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 Muenchener Rueckver Ges are associated (or correlated) with Oxbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Re Holdings has no effect on the direction of Muenchener Rueckver i.e., Muenchener Rueckver and Oxbridge go up and down completely randomly.
Pair Corralation between Muenchener Rueckver and Oxbridge
Assuming the 90 days horizon Muenchener Rueckver is expected to generate 49.17 times less return on investment than Oxbridge. But when comparing it to its historical volatility, Muenchener Rueckver Ges is 3.67 times less risky than Oxbridge. It trades about 0.01 of its potential returns per unit of risk. Oxbridge Re Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Oxbridge Re Holdings on August 24, 2024 and sell it today you would earn a total of 87.00 from holding Oxbridge Re Holdings or generate 39.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Muenchener Rueckver Ges vs. Oxbridge Re Holdings
Performance |
| Timeline |
| Muenchener Rueckver Ges |
| Oxbridge Re Holdings |
Muenchener Rueckver and Oxbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muenchener Rueckver and Oxbridge
The main advantage of trading using opposite Muenchener Rueckver and Oxbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muenchener Rueckver position performs unexpectedly, Oxbridge 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 Oxbridge will offset losses from the drop in Oxbridge's long position.| Muenchener Rueckver vs. SiriusPoint | Muenchener Rueckver vs. Renaissancere Holdings | Muenchener Rueckver vs. Maiden Holdings | Muenchener Rueckver vs. Greenlight Capital Re |
| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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