Correlation Between Athene Holding and Swiss Life
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Swiss Life 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 Swiss Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and Swiss Life Holding, you can compare the effects of market volatilities on Athene Holding and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Swiss Life.
Diversification Opportunities for Athene Holding and Swiss Life
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Athene and Swiss is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of Athene Holding i.e., Athene Holding and Swiss Life go up and down completely randomly.
Pair Corralation between Athene Holding and Swiss Life
Assuming the 90 days trading horizon Athene Holding is expected to generate 1.82 times less return on investment than Swiss Life. But when comparing it to its historical volatility, Athene Holding is 1.17 times less risky than Swiss Life. It trades about 0.07 of its potential returns per unit of risk. Swiss Life Holding is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,080 in Swiss Life Holding on September 3, 2024 and sell it today you would earn a total of 1,066 from holding Swiss Life Holding or generate 34.61% 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. Swiss Life Holding
Performance |
| Timeline |
| Athene Holding |
| Swiss Life Holding |
Athene Holding and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Swiss Life
The main advantage of trading using opposite Athene Holding and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life's long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Equitable Holdings |
| Swiss Life vs. Zurich Insurance Group | Swiss Life vs. Allianz SE | Swiss Life vs. Swiss Life Holding | Swiss Life vs. Zurich Insurance Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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