Correlation Between SCOR SE and Maiden Holdings

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

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

Diversification Opportunities for SCOR SE and Maiden Holdings

-0.47

Correlation Coefficient

SCOR SE  Maiden Holdings

Very good diversification

The 3 months correlation between SCOR and Maiden is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SCOR SE and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and SCOR SE 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 SCOR SE 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 SCOR SE i.e., SCOR SE and Maiden Holdings go up and down completely randomly.

Pair Corralation between SCOR SE and Maiden Holdings

If you would invest  2,340  in SCOR SE on September 19, 2024 and sell it today you would earn a total of  0.00  from holding SCOR SE or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SCOR SE  vs.  Maiden Holdings

SCOR SE

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR SE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, SCOR SE may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Maiden Holdings

Risk-Adjusted Performance

0 of 100

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 rather sound essential indicators, Maiden Holdings is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SCOR SE and Maiden Holdings

The main advantage of trading using opposite SCOR SE and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR SE 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 SCOR SE 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.