Correlation Between Oxbridge and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Oxbridge 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 Oxbridge and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxbridge Re Holdings and Maiden Holdings, you can compare the effects of market volatilities on Oxbridge 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 Oxbridge with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and Maiden Holdings.
Diversification Opportunities for Oxbridge and Maiden Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oxbridge and Maiden is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Oxbridge 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 Oxbridge Re Holdings 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 Oxbridge i.e., Oxbridge and Maiden Holdings go up and down completely randomly.
Pair Corralation between Oxbridge and Maiden Holdings
Given the investment horizon of 90 days Oxbridge Re Holdings is expected to generate 1.18 times more return on investment than Maiden Holdings. However, Oxbridge is 1.18 times more volatile than Maiden Holdings. It trades about 0.15 of its potential returns per unit of risk. Maiden Holdings is currently generating about -0.04 per unit of risk. If you would invest 212.00 in Oxbridge Re Holdings on August 23, 2024 and sell it today you would earn a total of 97.00 from holding Oxbridge Re Holdings or generate 45.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. Maiden Holdings
Performance |
| Timeline |
| Oxbridge Re Holdings |
| Maiden Holdings |
Oxbridge and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and Maiden Holdings
The main advantage of trading using opposite Oxbridge and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge 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.| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss Re |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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