Correlation Between FUTURE GAMING and ATHENE HOLDING
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and ATHENE HOLDING 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 FUTURE GAMING and ATHENE HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUTURE GAMING GRP and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on FUTURE GAMING and ATHENE HOLDING 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 FUTURE GAMING with a short position of ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and ATHENE HOLDING.
Diversification Opportunities for FUTURE GAMING and ATHENE HOLDING
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FUTURE and ATHENE is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC and FUTURE GAMING 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 FUTURE GAMING GRP are associated (or correlated) with ATHENE HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HOLDING PRFSERC has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and ATHENE HOLDING go up and down completely randomly.
Pair Corralation between FUTURE GAMING and ATHENE HOLDING
Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to generate 8.93 times more return on investment than ATHENE HOLDING. However, FUTURE GAMING is 8.93 times more volatile than ATHENE HOLDING PRFSERC. It trades about 0.05 of its potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.09 per unit of risk. If you would invest 40.00 in FUTURE GAMING GRP on September 24, 2024 and sell it today you would earn a total of 11.00 from holding FUTURE GAMING GRP or generate 27.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.41% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. ATHENE HOLDING PRFSERC
Performance |
| Timeline |
| FUTURE GAMING GRP |
| ATHENE HOLDING PRFSERC |
FUTURE GAMING and ATHENE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and ATHENE HOLDING
The main advantage of trading using opposite FUTURE GAMING and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, ATHENE HOLDING 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 ATHENE HOLDING will offset losses from the drop in ATHENE HOLDING's long position.| FUTURE GAMING vs. Apollo Investment Corp | FUTURE GAMING vs. Gladstone Investment | FUTURE GAMING vs. ARROW ELECTRONICS | FUTURE GAMING vs. Chuangs China Investments |
| ATHENE HOLDING vs. Media and Games | ATHENE HOLDING vs. FUTURE GAMING GRP | ATHENE HOLDING vs. MCEWEN MINING INC | ATHENE HOLDING vs. Harmony Gold Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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