Correlation Between Media and ATHENE HOLDING
Can any of the company-specific risk be diversified away by investing in both Media 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 Media and ATHENE HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on Media 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 Media with a short position of ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and ATHENE HOLDING.
Diversification Opportunities for Media and ATHENE HOLDING
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Media and ATHENE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC and Media 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 Media and Games 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 PRFSERC has no effect on the direction of Media i.e., Media and ATHENE HOLDING go up and down completely randomly.
Pair Corralation between Media and ATHENE HOLDING
Assuming the 90 days trading horizon Media and Games is expected to generate 5.61 times more return on investment than ATHENE HOLDING. However, Media is 5.61 times more volatile than ATHENE HOLDING PRFSERC. It trades about 0.13 of its potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.09 per unit of risk. If you would invest 166.00 in Media and Games on September 24, 2024 and sell it today you would earn a total of 166.00 from holding Media and Games or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. ATHENE HOLDING PRFSERC
Performance |
| Timeline |
| Media and Games |
| ATHENE HOLDING PRFSERC |
Media and ATHENE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and ATHENE HOLDING
The main advantage of trading using opposite Media and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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.The idea behind Media and Games and ATHENE HOLDING PRFSERC 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 HOLDING vs. Media and Games | ATHENE HOLDING vs. FUTURE GAMING GRP | ATHENE HOLDING vs. MCEWEN MINING INC | ATHENE HOLDING vs. Harmony Gold Mining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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