Correlation Between Athene Holding and Enstar Group
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Enstar Group 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 Athene Holding and Enstar Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and Enstar Group Limited, you can compare the effects of market volatilities on Athene Holding and Enstar Group 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 Athene Holding with a short position of Enstar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Enstar Group.
Diversification Opportunities for Athene Holding and Enstar Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Athene and Enstar is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Enstar Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enstar Group Limited and Athene Holding 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 Athene Holding are associated (or correlated) with Enstar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enstar Group Limited has no effect on the direction of Athene Holding i.e., Athene Holding and Enstar Group go up and down completely randomly.
Pair Corralation between Athene Holding and Enstar Group
Assuming the 90 days trading horizon Athene Holding is expected to generate 1.04 times more return on investment than Enstar Group. However, Athene Holding is 1.04 times more volatile than Enstar Group Limited. It trades about 0.04 of its potential returns per unit of risk. Enstar Group Limited is currently generating about 0.01 per unit of risk. If you would invest 2,037 in Athene Holding on September 2, 2024 and sell it today you would earn a total of 533.00 from holding Athene Holding or generate 26.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. Enstar Group Limited
Performance |
| Timeline |
| Athene Holding |
| Enstar Group Limited |
Athene Holding and Enstar Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Enstar Group
The main advantage of trading using opposite Athene Holding and Enstar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Enstar Group 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 Enstar Group will offset losses from the drop in Enstar Group's long position.| Athene Holding vs. Arch Capital Group | Athene Holding vs. The Allstate | Athene Holding vs. Brighthouse Financial | Athene Holding vs. Athene Holding |
| Enstar Group vs. Athene Holding | Enstar Group vs. The Hartford Financial | Enstar Group vs. Arch Capital Group | Enstar Group vs. Athene Holding |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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