Correlation Between Athene Holding and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Athene Holding and Equitable 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 Equitable 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 Equitable Holdings, you can compare the effects of market volatilities on Athene Holding and Equitable 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Equitable Holdings.
Diversification Opportunities for Athene Holding and Equitable Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Athene and Equitable is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Athene Holding i.e., Athene Holding and Equitable Holdings go up and down completely randomly.
Pair Corralation between Athene Holding and Equitable Holdings
Assuming the 90 days trading horizon Athene Holding is expected to generate 2.7 times less return on investment than Equitable Holdings. But when comparing it to its historical volatility, Athene Holding is 2.45 times less risky than Equitable Holdings. It trades about 0.07 of its potential returns per unit of risk. Equitable Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,625 in Equitable Holdings on August 28, 2024 and sell it today you would earn a total of 282.00 from holding Equitable Holdings or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athene Holding vs. Equitable Holdings
Performance |
| Timeline |
| Athene Holding |
| Equitable Holdings |
Athene Holding and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athene Holding and Equitable Holdings
The main advantage of trading using opposite Athene Holding and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Equitable 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Argo Group International |
| Equitable Holdings vs. Equitable Holdings | Equitable Holdings vs. Athene Holding | Equitable Holdings vs. MetLife Preferred Stock | Equitable Holdings vs. Bank of America |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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