Correlation Between Argo Group and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Argo Group 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 Argo Group and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group International and Athene Holding, you can compare the effects of market volatilities on Argo Group 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 Argo Group with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and Athene Holding.
Diversification Opportunities for Argo Group and Athene Holding
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Argo and Athene is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group International and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Argo Group 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 Argo Group International 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 Argo Group i.e., Argo Group and Athene Holding go up and down completely randomly.
Pair Corralation between Argo Group and Athene Holding
Assuming the 90 days trading horizon Argo Group International is expected to generate 0.19 times more return on investment than Athene Holding. However, Argo Group International is 5.18 times less risky than Athene Holding. It trades about 0.24 of its potential returns per unit of risk. Athene Holding is currently generating about -0.03 per unit of risk. If you would invest 2,478 in Argo Group International on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Argo Group International or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Group International vs. Athene Holding
Performance |
| Timeline |
| Argo Group International |
| Athene Holding |
Argo Group and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and Athene Holding
The main advantage of trading using opposite Argo Group and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group 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.| Argo Group vs. Newpark Resources | Argo Group vs. Hurco Companies | Argo Group vs. Dream Finders Homes | Argo Group vs. Park Ohio Holdings |
| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Aspen Insurance Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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