Correlation Between Carlyle and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Athene Holding, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Athene Holding.
Diversification Opportunities for Carlyle and Athene Holding
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlyle and Athene is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Carlyle 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 Carlyle Group 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 Carlyle i.e., Carlyle and Athene Holding go up and down completely randomly.
Pair Corralation between Carlyle and Athene Holding
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 11.42 times more return on investment than Athene Holding. However, Carlyle is 11.42 times more volatile than Athene Holding. It trades about 0.15 of its potential returns per unit of risk. Athene Holding is currently generating about 0.23 per unit of risk. If you would invest 4,891 in Carlyle Group on August 24, 2024 and sell it today you would earn a total of 388.00 from holding Carlyle Group or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Athene Holding
Performance |
| Timeline |
| Carlyle Group |
| Athene Holding |
Carlyle and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Athene Holding
The main advantage of trading using opposite Carlyle and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Athene Holding vs. Athene Holding | Athene Holding vs. The Hartford Financial | Athene Holding vs. Arch Capital Group | 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 Stocks Directory module to find actively traded stocks across global markets.
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