Correlation Between International General and Athene Holding
Can any of the company-specific risk be diversified away by investing in both International General 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 International General and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International General Insurance and Athene Holding, you can compare the effects of market volatilities on International General 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 International General with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of International General and Athene Holding.
Diversification Opportunities for International General and Athene Holding
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and Athene is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding International General Insuranc and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and International General 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 International General Insurance 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 International General i.e., International General and Athene Holding go up and down completely randomly.
Pair Corralation between International General and Athene Holding
Given the investment horizon of 90 days International General Insurance is expected to generate 1.99 times more return on investment than Athene Holding. However, International General is 1.99 times more volatile than Athene Holding. It trades about 0.15 of its potential returns per unit of risk. Athene Holding is currently generating about 0.03 per unit of risk. If you would invest 790.00 in International General Insurance on August 27, 2024 and sell it today you would earn a total of 1,808 from holding International General Insurance or generate 228.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International General Insuranc vs. Athene Holding
Performance |
| Timeline |
| International General |
| Athene Holding |
International General and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International General and Athene Holding
The main advantage of trading using opposite International General and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International General 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.| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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