Correlation Between Fundamental Global and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Fundamental Global 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 Fundamental Global and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Global and Athene Holding, you can compare the effects of market volatilities on Fundamental Global 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 Fundamental Global with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Global and Athene Holding.
Diversification Opportunities for Fundamental Global and Athene Holding
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fundamental and Athene is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Fundamental Global 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 Fundamental Global 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 Fundamental Global i.e., Fundamental Global and Athene Holding go up and down completely randomly.
Pair Corralation between Fundamental Global and Athene Holding
Assuming the 90 days horizon Fundamental Global is expected to generate 2.21 times more return on investment than Athene Holding. However, Fundamental Global is 2.21 times more volatile than Athene Holding. It trades about 0.03 of its potential returns per unit of risk. Athene Holding is currently generating about 0.03 per unit of risk. If you would invest 1,524 in Fundamental Global on August 24, 2024 and sell it today you would earn a total of 266.00 from holding Fundamental Global or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Global vs. Athene Holding
Performance |
| Timeline |
| Fundamental Global |
| Athene Holding |
Fundamental Global and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Global and Athene Holding
The main advantage of trading using opposite Fundamental Global and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Global 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.| Fundamental Global vs. Enstar Group Limited | Fundamental Global vs. Equitable Holdings | Fundamental Global vs. Athene Holding | Fundamental Global vs. Athene Holding |
| Athene Holding vs. Enstar Group Limited | Athene Holding vs. Berkshire Hathaway | Athene Holding vs. Athene Holding | 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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