Correlation Between BNRE Old and Maiden Holdings

Can any of the company-specific risk be diversified away by investing in both BNRE Old 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 BNRE Old and Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BNRE Old and Maiden Holdings, you can compare the effects of market volatilities on BNRE Old 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 BNRE Old with a short position of Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNRE Old and Maiden Holdings.

Diversification Opportunities for BNRE Old and Maiden Holdings

0.0

Correlation Coefficient

BNRE Old  Maiden Holdings

Pay attention - limited upside

The 3 months correlation between BNRE and Maiden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNRE Old and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and BNRE Old 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 BNRE Old 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 BNRE Old i.e., BNRE Old and Maiden Holdings go up and down completely randomly.

Pair Corralation between BNRE Old and Maiden Holdings

If you would invest (100.00) in BNRE Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding BNRE Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BNRE Old  vs.  Maiden Holdings

BNRE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days BNRE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BNRE Old is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Maiden Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maiden Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with BNRE Old and Maiden Holdings

The main advantage of trading using opposite BNRE Old and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNRE Old 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.

The idea behind BNRE Old and Maiden Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.