Correlation Between Ford and ATHENE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and ATHENE HLDG LTD, you can compare the effects of market volatilities on Ford and ATHENE 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 Ford with a short position of ATHENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and ATHENE.
Diversification Opportunities for Ford and ATHENE
Very good diversification
The 3 months correlation between Ford and ATHENE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and ATHENE HLDG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HLDG LTD and Ford 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 Ford Motor are associated (or correlated) with ATHENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HLDG LTD has no effect on the direction of Ford i.e., Ford and ATHENE go up and down completely randomly.
Pair Corralation between Ford and ATHENE
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.82 times more return on investment than ATHENE. However, Ford is 2.82 times more volatile than ATHENE HLDG LTD. It trades about 0.01 of its potential returns per unit of risk. ATHENE HLDG LTD is currently generating about 0.01 per unit of risk. If you would invest 1,148 in Ford Motor on September 3, 2024 and sell it today you would lose (35.00) from holding Ford Motor or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Ford Motor vs. ATHENE HLDG LTD
Performance |
| Timeline |
| Ford Motor |
| ATHENE HLDG LTD |
Ford and ATHENE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and ATHENE
The main advantage of trading using opposite Ford and ATHENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, ATHENE 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 will offset losses from the drop in ATHENE's long position.The idea behind Ford Motor and ATHENE HLDG LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ATHENE vs. WPP PLC ADR | ATHENE vs. Marchex | ATHENE vs. AmTrust Financial Services | ATHENE vs. Dolphin Entertainment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |