Correlation Between Hartford Financial and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Hartford Financial 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 Hartford Financial and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Financial Services and Athene Holding, you can compare the effects of market volatilities on Hartford Financial 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 Hartford Financial with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Athene Holding.
Diversification Opportunities for Hartford Financial and Athene Holding
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hartford and Athene is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Financial Services and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Hartford Financial 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 Hartford Financial Services 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 Hartford Financial i.e., Hartford Financial and Athene Holding go up and down completely randomly.
Pair Corralation between Hartford Financial and Athene Holding
Considering the 90-day investment horizon Hartford Financial Services is expected to generate 1.34 times more return on investment than Athene Holding. However, Hartford Financial is 1.34 times more volatile than Athene Holding. It trades about 0.09 of its potential returns per unit of risk. Athene Holding is currently generating about 0.03 per unit of risk. If you would invest 7,195 in Hartford Financial Services on August 24, 2024 and sell it today you would earn a total of 4,877 from holding Hartford Financial Services or generate 67.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Financial Services vs. Athene Holding
Performance |
| Timeline |
| Hartford Financial |
| Athene Holding |
Hartford Financial and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and Athene Holding
The main advantage of trading using opposite Hartford Financial and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial 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.| Hartford Financial vs. Goosehead Insurance | Hartford Financial vs. International General Insurance | Hartford Financial vs. Enstar Group Limited | Hartford Financial vs. Arch Capital Group |
| Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Athene Holding | Athene Holding vs. Argo Group International |
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
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |