Correlation Between Maiden Holdings and Root
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Root 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 Root into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Root Inc, you can compare the effects of market volatilities on Maiden Holdings and Root 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 Root. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Root.
Diversification Opportunities for Maiden Holdings and Root
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maiden and Root is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Root Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Root Inc 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 Root. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Root Inc has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Root go up and down completely randomly.
Pair Corralation between Maiden Holdings and Root
Given the investment horizon of 90 days Maiden Holdings is expected to generate 0.16 times more return on investment than Root. However, Maiden Holdings is 6.31 times less risky than Root. It trades about -0.05 of its potential returns per unit of risk. Root Inc is currently generating about -0.02 per unit of risk. If you would invest 1,532 in Maiden Holdings on August 27, 2025 and sell it today you would lose (32.00) from holding Maiden Holdings or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Maiden Holdings vs. Root Inc
Performance |
| Timeline |
| Maiden Holdings |
| Root Inc |
Maiden Holdings and Root Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Root
The main advantage of trading using opposite Maiden Holdings and Root positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Root 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 Root will offset losses from the drop in Root's long position.| Maiden Holdings vs. Panache Beverage | Maiden Holdings vs. Sumitomo Chemical Co | Maiden Holdings vs. Silicon Motion Technology | Maiden Holdings vs. PTT Global Chemical |
| Root vs. Pintec Technology Holdings | Root vs. Compagnie Plastic Omnium | Root vs. Mitsubishi Materials | Root vs. Martin Marietta Materials |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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