Correlation Between AXA SA and Athene Holding
Can any of the company-specific risk be diversified away by investing in both AXA SA and Athene Holding 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 AXA SA and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Athene Holding, you can compare the effects of market volatilities on AXA SA and Athene Holding 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 AXA SA with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Athene Holding.
Diversification Opportunities for AXA SA and Athene Holding
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AXA and Athene is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and AXA SA 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 AXA SA are associated (or correlated) with Athene Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athene Holding has no effect on the direction of AXA SA i.e., AXA SA and Athene Holding go up and down completely randomly.
Pair Corralation between AXA SA and Athene Holding
Assuming the 90 days horizon AXA SA is expected to under-perform the Athene Holding. In addition to that, AXA SA is 2.2 times more volatile than Athene Holding. It trades about -0.28 of its total potential returns per unit of risk. Athene Holding is currently generating about 0.08 per unit of volatility. If you would invest 2,496 in Athene Holding on August 24, 2024 and sell it today you would earn a total of 24.00 from holding Athene Holding or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXA SA vs. Athene Holding
Performance |
| Timeline |
| AXA SA |
| Athene Holding |
AXA SA and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Athene Holding
The main advantage of trading using opposite AXA SA and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Athene Holding 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 Athene Holding will offset losses from the drop in Athene Holding's long position.| AXA SA vs. Berkshire Hathaway | AXA SA vs. Berkshire Hathaway | AXA SA vs. Allianz SE | AXA SA vs. Zurich Insurance Group |
| Athene Holding vs. Arch Capital Group | Athene Holding vs. The Allstate | Athene Holding vs. Brighthouse Financial | Athene Holding vs. Athene Holding |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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