Correlation Between Athene Holding and CLP Holdings
Can any of the company-specific risk be diversified away by investing in both Athene Holding and CLP Holdings 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 CLP Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athene Holding and CLP Holdings, you can compare the effects of market volatilities on Athene Holding and CLP Holdings 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 CLP Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and CLP Holdings.
Diversification Opportunities for Athene Holding and CLP Holdings
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Athene and CLP is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and CLP Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLP 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 CLP Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLP Holdings has no effect on the direction of Athene Holding i.e., Athene Holding and CLP Holdings go up and down completely randomly.
Pair Corralation between Athene Holding and CLP Holdings
Assuming the 90 days trading horizon Athene Holding is expected to generate 1.89 times less return on investment than CLP Holdings. But when comparing it to its historical volatility, Athene Holding is 1.5 times less risky than CLP Holdings. It trades about 0.03 of its potential returns per unit of risk. CLP Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 665.00 in CLP Holdings on November 2, 2024 and sell it today you would earn a total of 166.00 from holding CLP Holdings or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. CLP Holdings
Performance |
| Timeline |
| Athene Holding |
| CLP Holdings |
Athene Holding and CLP Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and CLP Holdings
The main advantage of trading using opposite Athene Holding and CLP Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, CLP Holdings 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 CLP Holdings will offset losses from the drop in CLP Holdings' long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Argo Group International |
| CLP Holdings vs. Hong Kong and | CLP Holdings vs. Power Assets Holdings | CLP Holdings vs. Swire Pacific | CLP Holdings vs. Sun Hung Kai |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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