Correlation Between Equitable Holdings and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Equitable Holdings 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 Equitable Holdings and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equitable Holdings and Athene Holding, you can compare the effects of market volatilities on Equitable Holdings 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 Equitable Holdings with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equitable Holdings and Athene Holding.
Diversification Opportunities for Equitable Holdings and Athene Holding
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Equitable and Athene is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Equitable Holdings and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Equitable Holdings 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 Equitable Holdings 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 Equitable Holdings i.e., Equitable Holdings and Athene Holding go up and down completely randomly.
Pair Corralation between Equitable Holdings and Athene Holding
Assuming the 90 days trading horizon Equitable Holdings is expected to under-perform the Athene Holding. But the preferred stock apears to be less risky and, when comparing its historical volatility, Equitable Holdings is 1.71 times less risky than Athene Holding. The preferred stock trades about -0.12 of its potential returns per unit of risk. The Athene Holding is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,241 in Athene Holding on August 27, 2024 and sell it today you would lose (20.00) from holding Athene Holding or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equitable Holdings vs. Athene Holding
Performance |
| Timeline |
| Equitable Holdings |
| Athene Holding |
Equitable Holdings and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equitable Holdings and Athene Holding
The main advantage of trading using opposite Equitable Holdings and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equitable Holdings 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.| Equitable Holdings vs. Capital One Financial | Equitable Holdings vs. Citizens Financial Group | Equitable Holdings vs. Equitable Holdings | Equitable Holdings vs. MetLife Preferred Stock |
| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Equitable Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |