Correlation Between Merck and ATHENE
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By analyzing existing cross correlation between Merck Company and ATHENE HLDG LTD, you can compare the effects of market volatilities on Merck and ATHENE 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 Merck with a short position of ATHENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and ATHENE.
Diversification Opportunities for Merck and ATHENE
Poor diversification
The 3 months correlation between Merck and ATHENE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and ATHENE HLDG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HLDG LTD and Merck 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 Merck Company are associated (or correlated) with ATHENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HLDG LTD has no effect on the direction of Merck i.e., Merck and ATHENE go up and down completely randomly.
Pair Corralation between Merck and ATHENE
Considering the 90-day investment horizon Merck is expected to generate 7.6 times less return on investment than ATHENE. In addition to that, Merck is 1.53 times more volatile than ATHENE HLDG LTD. It trades about 0.0 of its total potential returns per unit of risk. ATHENE HLDG LTD is currently generating about 0.01 per unit of volatility. If you would invest 10,150 in ATHENE HLDG LTD on September 3, 2024 and sell it today you would earn a total of 217.00 from holding ATHENE HLDG LTD or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Merck Company vs. ATHENE HLDG LTD
Performance |
| Timeline |
| Merck Company |
| ATHENE HLDG LTD |
Merck and ATHENE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and ATHENE
The main advantage of trading using opposite Merck and ATHENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, ATHENE 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 will offset losses from the drop in ATHENE's long position.| Merck vs. Pfizer Inc | Merck vs. Johnson Johnson | Merck vs. Highway Holdings Limited | Merck vs. QCR Holdings |
| ATHENE vs. WPP PLC ADR | ATHENE vs. Marchex | ATHENE vs. AmTrust Financial Services | ATHENE vs. Dolphin Entertainment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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