Correlation Between Athene Holding and Lendingtree
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Lendingtree 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 Lendingtree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and Lendingtree, you can compare the effects of market volatilities on Athene Holding and Lendingtree 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 Lendingtree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Lendingtree.
Diversification Opportunities for Athene Holding and Lendingtree
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Athene and Lendingtree is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Lendingtree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendingtree 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 Lendingtree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendingtree has no effect on the direction of Athene Holding i.e., Athene Holding and Lendingtree go up and down completely randomly.
Pair Corralation between Athene Holding and Lendingtree
Assuming the 90 days trading horizon Athene Holding is expected to generate 0.18 times more return on investment than Lendingtree. However, Athene Holding is 5.6 times less risky than Lendingtree. It trades about 0.07 of its potential returns per unit of risk. Lendingtree is currently generating about -0.03 per unit of risk. If you would invest 2,545 in Athene Holding on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Athene Holding or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. Lendingtree
Performance |
| Timeline |
| Athene Holding |
| Lendingtree |
Athene Holding and Lendingtree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Lendingtree
The main advantage of trading using opposite Athene Holding and Lendingtree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Lendingtree 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 Lendingtree will offset losses from the drop in Lendingtree's long position.| Athene Holding vs. FAT Brands | Athene Holding vs. Fortress Biotech Pref | Athene Holding vs. Fulton Financial | Athene Holding vs. Aquagold International |
| Lendingtree vs. Voya Financial | Lendingtree vs. B Riley Financial | Lendingtree vs. Voya Financial | Lendingtree vs. B Riley Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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