Correlation Between Athene Holding and Fundamental Global
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Fundamental Global 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 Fundamental Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and Fundamental Global, you can compare the effects of market volatilities on Athene Holding and Fundamental Global 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 Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Fundamental Global.
Diversification Opportunities for Athene Holding and Fundamental Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Athene and Fundamental is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global 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 Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of Athene Holding i.e., Athene Holding and Fundamental Global go up and down completely randomly.
Pair Corralation between Athene Holding and Fundamental Global
Assuming the 90 days trading horizon Athene Holding is expected to generate 4.43 times less return on investment than Fundamental Global. But when comparing it to its historical volatility, Athene Holding is 2.59 times less risky than Fundamental Global. It trades about 0.01 of its potential returns per unit of risk. Fundamental Global is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,598 in Fundamental Global on November 9, 2024 and sell it today you would earn a total of 29.00 from holding Fundamental Global or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. Fundamental Global
Performance |
| Timeline |
| Athene Holding |
| Fundamental Global |
Athene Holding and Fundamental Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Fundamental Global
The main advantage of trading using opposite Athene Holding and Fundamental Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Fundamental Global 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 Fundamental Global will offset losses from the drop in Fundamental Global's long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Equitable Holdings |
| Fundamental Global vs. FAT Brands | Fundamental Global vs. Fortress Biotech Pref | Fundamental Global vs. Fulton 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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