Correlation Between Ageas SA/NV and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Ageas SA/NV 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 Ageas SA/NV and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Athene Holding, you can compare the effects of market volatilities on Ageas SA/NV 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 Ageas SA/NV with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SA/NV and Athene Holding.
Diversification Opportunities for Ageas SA/NV and Athene Holding
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ageas and Athene is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Ageas SA/NV 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 ageas SANV 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 has no effect on the direction of Ageas SA/NV i.e., Ageas SA/NV and Athene Holding go up and down completely randomly.
Pair Corralation between Ageas SA/NV and Athene Holding
Assuming the 90 days horizon ageas SANV is expected to under-perform the Athene Holding. In addition to that, Ageas SA/NV is 5.94 times more volatile than Athene Holding. It trades about -0.05 of its total potential returns per unit of risk. Athene Holding is currently generating about 0.23 per unit of volatility. If you would invest 2,506 in Athene Holding on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Athene Holding or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. Athene Holding
Performance |
| Timeline |
| Ageas SA/NV |
| Athene Holding |
Ageas SA/NV and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SA/NV and Athene Holding
The main advantage of trading using opposite Ageas SA/NV and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SA/NV 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.| Ageas SA/NV vs. Assicurazioni Generali SpA | Ageas SA/NV vs. AXA SA | Ageas SA/NV vs. Sampo OYJ | Ageas SA/NV vs. Zurich Insurance Group |
| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Argo Group International |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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