Correlation Between Athene Holding and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Hartford Financial 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 Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and The Hartford Financial, you can compare the effects of market volatilities on Athene Holding and Hartford Financial 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 Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Hartford Financial.
Diversification Opportunities for Athene Holding and Hartford Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Athene and Hartford is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and The Hartford Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Financial 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 Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Financial has no effect on the direction of Athene Holding i.e., Athene Holding and Hartford Financial go up and down completely randomly.
Pair Corralation between Athene Holding and Hartford Financial
Assuming the 90 days trading horizon Athene Holding is expected to under-perform the Hartford Financial. In addition to that, Athene Holding is 2.71 times more volatile than The Hartford Financial. It trades about -0.11 of its total potential returns per unit of risk. The Hartford Financial is currently generating about 0.08 per unit of volatility. If you would invest 2,481 in The Hartford Financial on August 24, 2024 and sell it today you would earn a total of 21.00 from holding The Hartford Financial or generate 0.85% 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. The Hartford Financial
Performance |
| Timeline |
| Athene Holding |
| The Hartford Financial |
Athene Holding and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Hartford Financial
The main advantage of trading using opposite Athene Holding and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Hartford Financial 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 Hartford Financial will offset losses from the drop in Hartford Financial's long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Equitable Holdings |
| Hartford Financial vs. Arch Capital Group | Hartford Financial vs. Athene Holding | Hartford Financial vs. Arch Capital Group | Hartford Financial 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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