Correlation Between Maiden Holdings and DBA Sempra

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

By analyzing existing cross correlation between Maiden Holdings North and DBA Sempra 5750, you can compare the effects of market volatilities on Maiden Holdings and DBA Sempra 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 DBA Sempra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and DBA Sempra.

Diversification Opportunities for Maiden Holdings and DBA Sempra

-0.12

Correlation Coefficient

Maiden Holdings  DBA Sempra

Good diversification

The 3 months correlation between Maiden and DBA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings North and DBA Sempra 5750 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBA Sempra 5750 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 North are associated (or correlated) with DBA Sempra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBA Sempra 5750 has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and DBA Sempra go up and down completely randomly.

Pair Corralation between Maiden Holdings and DBA Sempra

Given the investment horizon of 90 days Maiden Holdings is expected to generate 4.7 times less return on investment than DBA Sempra. In addition to that, Maiden Holdings is 1.06 times more volatile than DBA Sempra 5750. It trades about 0.04 of its total potential returns per unit of risk. DBA Sempra 5750 is currently generating about 0.18 per unit of volatility. If you would invest  2,036  in DBA Sempra 5750 on May 7, 2025 and sell it today you would earn a total of  208.00  from holding DBA Sempra 5750 or generate 10.22% return on investment over 90 days.

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

Maiden Holdings North  vs.  DBA Sempra 5750

Maiden Holdings North

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Maiden Holdings North are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Maiden Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

DBA Sempra 5750

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DBA Sempra 5750 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, DBA Sempra may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Maiden Holdings and DBA Sempra

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

The idea behind Maiden Holdings North and DBA Sempra 5750 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.