Correlation Between Aspen Insurance and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Aspen Insurance 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 Aspen Insurance and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Insurance Holdings and Athene Holding, you can compare the effects of market volatilities on Aspen Insurance 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 Aspen Insurance with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and Athene Holding.
Diversification Opportunities for Aspen Insurance and Athene Holding
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aspen and Athene is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Aspen Insurance 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 Aspen Insurance Holdings 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 Aspen Insurance i.e., Aspen Insurance and Athene Holding go up and down completely randomly.
Pair Corralation between Aspen Insurance and Athene Holding
Assuming the 90 days trading horizon Aspen Insurance Holdings is expected to generate 4.98 times more return on investment than Athene Holding. However, Aspen Insurance is 4.98 times more volatile than Athene Holding. It trades about 0.07 of its potential returns per unit of risk. Athene Holding is currently generating about 0.06 per unit of risk. If you would invest 2,025 in Aspen Insurance Holdings on November 9, 2024 and sell it today you would earn a total of 30.00 from holding Aspen Insurance Holdings or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. Athene Holding
Performance |
| Timeline |
| Aspen Insurance Holdings |
| Athene Holding |
Aspen Insurance and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and Athene Holding
The main advantage of trading using opposite Aspen Insurance and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance 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.| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |