Correlation Between Positive Physicians and MBIA

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

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

Diversification Opportunities for Positive Physicians and MBIA

0.0

Correlation Coefficient

Positive Physicians  MBIA

Pay attention - limited upside

The 3 months correlation between Positive and MBIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Positive Physicians Holdings and MBIA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBIA Inc and Positive Physicians 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 Positive Physicians Holdings are associated (or correlated) with MBIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBIA Inc has no effect on the direction of Positive Physicians i.e., Positive Physicians and MBIA go up and down completely randomly.

Pair Corralation between Positive Physicians and MBIA

If you would invest (100.00) in Positive Physicians Holdings on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Positive Physicians Holdings 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

Positive Physicians Holdings  vs.  MBIA Inc

Positive Physicians

Risk-Adjusted Performance

Very Weak

Over the last 90 days Positive Physicians Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Positive Physicians is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

MBIA Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MBIA Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Positive Physicians and MBIA

The main advantage of trading using opposite Positive Physicians and MBIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Positive Physicians position performs unexpectedly, MBIA 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 MBIA will offset losses from the drop in MBIA's long position.

The idea behind Positive Physicians Holdings and MBIA Inc 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.