Correlation Between Athene Holding and Ageas SA/NV
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Ageas SA/NV 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 Ageas SA/NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and ageas SANV, you can compare the effects of market volatilities on Athene Holding and Ageas SA/NV 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 Ageas SA/NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Ageas SA/NV.
Diversification Opportunities for Athene Holding and Ageas SA/NV
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Athene and Ageas is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV 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 Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of Athene Holding i.e., Athene Holding and Ageas SA/NV go up and down completely randomly.
Pair Corralation between Athene Holding and Ageas SA/NV
Assuming the 90 days trading horizon Athene Holding is expected to generate 0.18 times more return on investment than Ageas SA/NV. However, Athene Holding is 5.68 times less risky than Ageas SA/NV. It trades about 0.12 of its potential returns per unit of risk. ageas SANV is currently generating about -0.09 per unit of risk. If you would invest 2,513 in Athene Holding on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Athene Holding or generate 0.6% 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. ageas SANV
Performance |
| Timeline |
| Athene Holding |
| Ageas SA/NV |
Athene Holding and Ageas SA/NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Ageas SA/NV
The main advantage of trading using opposite Athene Holding and Ageas SA/NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Ageas SA/NV 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 Ageas SA/NV will offset losses from the drop in Ageas SA/NV's long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Argo Group International |
| Ageas SA/NV vs. Assicurazioni Generali SpA | Ageas SA/NV vs. AXA SA | Ageas SA/NV vs. Sampo OYJ | Ageas SA/NV 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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