Correlation Between Athene Holding and Aspen Insurance
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Aspen Insurance 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 Aspen Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and Aspen Insurance Holdings, you can compare the effects of market volatilities on Athene Holding and Aspen Insurance 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 Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Aspen Insurance.
Diversification Opportunities for Athene Holding and Aspen Insurance
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Athene and Aspen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Aspen Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Insurance Holdings 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 Aspen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Insurance Holdings has no effect on the direction of Athene Holding i.e., Athene Holding and Aspen Insurance go up and down completely randomly.
Pair Corralation between Athene Holding and Aspen Insurance
Assuming the 90 days trading horizon Athene Holding is expected to under-perform the Aspen Insurance. But the preferred stock apears to be less risky and, when comparing its historical volatility, Athene Holding is 1.13 times less risky than Aspen Insurance. The preferred stock trades about -0.09 of its potential returns per unit of risk. The Aspen Insurance Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,114 in Aspen Insurance Holdings on August 29, 2024 and sell it today you would lose (31.00) from holding Aspen Insurance Holdings or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. Aspen Insurance Holdings
Performance |
| Timeline |
| Athene Holding |
| Aspen Insurance Holdings |
Athene Holding and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Aspen Insurance
The main advantage of trading using opposite Athene Holding and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Aspen Insurance 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 Aspen Insurance will offset losses from the drop in Aspen Insurance's long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Equitable Holdings |
| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. AXIS Capital Holdings | Aspen Insurance 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |