Correlation Between ATHENE HOLDING and Continental
Can any of the company-specific risk be diversified away by investing in both ATHENE HOLDING and Continental 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 Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATHENE HOLDING PRFSERC and Camden Property Trust, you can compare the effects of market volatilities on ATHENE HOLDING and Continental 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 Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and Continental.
Diversification Opportunities for ATHENE HOLDING and Continental
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATHENE and Continental is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust 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 PRFSERC are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of ATHENE HOLDING i.e., ATHENE HOLDING and Continental go up and down completely randomly.
Pair Corralation between ATHENE HOLDING and Continental
Assuming the 90 days trading horizon ATHENE HOLDING PRFSERC is expected to generate 0.56 times more return on investment than Continental. However, ATHENE HOLDING PRFSERC is 1.78 times less risky than Continental. It trades about 0.16 of its potential returns per unit of risk. Camden Property Trust is currently generating about 0.01 per unit of risk. If you would invest 2,262 in ATHENE HOLDING PRFSERC on September 23, 2024 and sell it today you would earn a total of 118.00 from holding ATHENE HOLDING PRFSERC or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATHENE HOLDING PRFSERC vs. Camden Property Trust
Performance |
| Timeline |
| ATHENE HOLDING PRFSERC |
| Camden Property Trust |
ATHENE HOLDING and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATHENE HOLDING and Continental
The main advantage of trading using opposite ATHENE HOLDING and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENE HOLDING position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental's long position.| ATHENE HOLDING vs. Media and Games | ATHENE HOLDING vs. FUTURE GAMING GRP | ATHENE HOLDING vs. MCEWEN MINING INC | ATHENE HOLDING vs. Harmony Gold Mining |
| Continental vs. Equity Residential | Continental vs. AvalonBay Communities | Continental vs. UDR Inc | Continental vs. INVITATION HOMES DL |
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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