Correlation Between MSCI ACWI and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both MSCI ACWI 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 MSCI ACWI and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSCI ACWI exAUCONSUMER and Maiden Holdings, you can compare the effects of market volatilities on MSCI ACWI 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 MSCI ACWI with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and Maiden Holdings.
Diversification Opportunities for MSCI ACWI and Maiden Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MSCI and Maiden is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and MSCI ACWI 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 MSCI ACWI exAUCONSUMER 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 MSCI ACWI i.e., MSCI ACWI and Maiden Holdings go up and down completely randomly.
Pair Corralation between MSCI ACWI and Maiden Holdings
Assuming the 90 days horizon MSCI ACWI exAUCONSUMER is expected to generate 0.2 times more return on investment than Maiden Holdings. However, MSCI ACWI exAUCONSUMER is 4.94 times less risky than Maiden Holdings. It trades about 0.17 of its potential returns per unit of risk. Maiden Holdings is currently generating about -0.04 per unit of risk. If you would invest 2,474 in MSCI ACWI exAUCONSUMER on August 27, 2024 and sell it today you would earn a total of 23.00 from holding MSCI ACWI exAUCONSUMER or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSCI ACWI exAUCONSUMER vs. Maiden Holdings
Performance |
| Timeline |
| MSCI ACWI exAUCONSUMER |
| Maiden Holdings |
MSCI ACWI and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSCI ACWI and Maiden Holdings
The main advantage of trading using opposite MSCI ACWI and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI 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.| MSCI ACWI vs. Harrow Health 8625 | MSCI ACWI vs. Babcock Wilcox Enterprises, | MSCI ACWI vs. Babcock Wilcox Enterprises | MSCI ACWI vs. TRINL |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |