Correlation Between Maiden Holdings and Reborn Coffee
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Reborn Coffee 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 Maiden Holdings and Reborn Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Reborn Coffee, you can compare the effects of market volatilities on Maiden Holdings and Reborn Coffee 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 Maiden Holdings with a short position of Reborn Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Reborn Coffee.
Diversification Opportunities for Maiden Holdings and Reborn Coffee
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maiden and Reborn is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Reborn Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reborn Coffee and Maiden Holdings 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 Maiden Holdings are associated (or correlated) with Reborn Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reborn Coffee has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Reborn Coffee go up and down completely randomly.
Pair Corralation between Maiden Holdings and Reborn Coffee
Given the investment horizon of 90 days Maiden Holdings is expected to generate 0.29 times more return on investment than Reborn Coffee. However, Maiden Holdings is 3.41 times less risky than Reborn Coffee. It trades about -0.14 of its potential returns per unit of risk. Reborn Coffee is currently generating about -0.09 per unit of risk. If you would invest 1,511 in Maiden Holdings on September 12, 2025 and sell it today you would lose (193.00) from holding Maiden Holdings or give up 12.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Reborn Coffee
Performance |
| Timeline |
| Maiden Holdings |
| Reborn Coffee |
Maiden Holdings and Reborn Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Reborn Coffee
The main advantage of trading using opposite Maiden Holdings and Reborn Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Reborn Coffee 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 Reborn Coffee will offset losses from the drop in Reborn Coffee's long position.| Maiden Holdings vs. ProAssurance | Maiden Holdings vs. Root Inc | Maiden Holdings vs. Prospect Capital | Maiden Holdings vs. Selective Insurance Group |
| Reborn Coffee vs. Bt Brands | Reborn Coffee vs. U Power Limited | Reborn Coffee vs. Creative Global Technology | Reborn Coffee vs. Cenntro Electric Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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