Correlation Between Fidelis Insurance and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance 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 Fidelis Insurance and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelis Insurance Holdings and Athene Holding, you can compare the effects of market volatilities on Fidelis Insurance 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 Fidelis Insurance with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Athene Holding.
Diversification Opportunities for Fidelis Insurance and Athene Holding
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelis and Athene is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Fidelis Insurance 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 Fidelis Insurance 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 Fidelis Insurance i.e., Fidelis Insurance and Athene Holding go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Athene Holding
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to generate 3.16 times more return on investment than Athene Holding. However, Fidelis Insurance is 3.16 times more volatile than Athene Holding. It trades about 0.11 of its potential returns per unit of risk. Athene Holding is currently generating about 0.08 per unit of risk. If you would invest 1,214 in Fidelis Insurance Holdings on September 2, 2024 and sell it today you would earn a total of 839.00 from holding Fidelis Insurance Holdings or generate 69.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelis Insurance Holdings vs. Athene Holding
Performance |
| Timeline |
| Fidelis Insurance |
| Athene Holding |
Fidelis Insurance and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and Athene Holding
The main advantage of trading using opposite Fidelis Insurance and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance 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.| Fidelis Insurance vs. Axa Equitable Holdings | Fidelis Insurance vs. American International Group | Fidelis Insurance vs. Old Republic International | Fidelis Insurance vs. Sun Life Financial |
| Athene Holding vs. Enstar Group Limited | Athene Holding vs. Fidelis Insurance Holdings | Athene Holding vs. Aegon NV ADR | Athene Holding vs. American International Group |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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