Correlation Between Tevogen Bio and Maiden Holdings

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

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

Diversification Opportunities for Tevogen Bio and Maiden Holdings

0.71

Correlation Coefficient

Tevogen Bio  Maiden Holdings

Poor diversification

The 3 months correlation between Tevogen and Maiden is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tevogen Bio Holdings and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings and Tevogen Bio 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 Tevogen Bio Holdings 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 Tevogen Bio i.e., Tevogen Bio and Maiden Holdings go up and down completely randomly.

Pair Corralation between Tevogen Bio and Maiden Holdings

Assuming the 90 days horizon Tevogen Bio Holdings is expected to under-perform the Maiden Holdings. In addition to that, Tevogen Bio is 9.83 times more volatile than Maiden Holdings. It trades about -0.14 of its total potential returns per unit of risk. Maiden Holdings is currently generating about -0.04 per unit of volatility. If you would invest  1,682  in Maiden Holdings on August 28, 2024 and sell it today you would lose (21.00) from holding Maiden Holdings or give up 1.25% of portfolio value over 90 days.

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

Tevogen Bio Holdings  vs.  Maiden Holdings

Tevogen Bio Holdings

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tevogen Bio Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Tevogen Bio showed solid returns over the last few months and may actually be approaching a breakup point.

Maiden Holdings

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maiden Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Maiden Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tevogen Bio and Maiden Holdings

The main advantage of trading using opposite Tevogen Bio and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tevogen Bio 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 Tevogen Bio Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.