Correlation Between Athene Holding and AXIS Capital
Can any of the company-specific risk be diversified away by investing in both Athene Holding and AXIS Capital 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 AXIS Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and AXIS Capital Holdings, you can compare the effects of market volatilities on Athene Holding and AXIS Capital 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 AXIS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and AXIS Capital.
Diversification Opportunities for Athene Holding and AXIS Capital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Athene and AXIS is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and AXIS Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXIS Capital 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 AXIS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXIS Capital Holdings has no effect on the direction of Athene Holding i.e., Athene Holding and AXIS Capital go up and down completely randomly.
Pair Corralation between Athene Holding and AXIS Capital
Assuming the 90 days trading horizon Athene Holding is expected to under-perform the AXIS Capital. In addition to that, Athene Holding is 2.01 times more volatile than AXIS Capital Holdings. It trades about -0.07 of its total potential returns per unit of risk. AXIS Capital Holdings is currently generating about 0.12 per unit of volatility. If you would invest 2,232 in AXIS Capital Holdings on August 24, 2024 and sell it today you would earn a total of 40.00 from holding AXIS Capital Holdings or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. AXIS Capital Holdings
Performance |
| Timeline |
| Athene Holding |
| AXIS Capital Holdings |
Athene Holding and AXIS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and AXIS Capital
The main advantage of trading using opposite Athene Holding and AXIS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, AXIS Capital 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 AXIS Capital will offset losses from the drop in AXIS Capital's long position.| Athene Holding vs. Enstar Group Limited | Athene Holding vs. Equitable Holdings | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding |
| AXIS Capital vs. Ambac Financial Group | AXIS Capital vs. Employers Holdings | AXIS Capital vs. James River Group | AXIS Capital vs. Assured Guaranty |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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