Correlation Between NN Group and Athene Holding
Can any of the company-specific risk be diversified away by investing in both NN Group 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 NN Group and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NN Group NV and Athene Holding, you can compare the effects of market volatilities on NN Group 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 NN Group with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NN Group and Athene Holding.
Diversification Opportunities for NN Group and Athene Holding
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NNGPF and Athene is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding NN Group NV and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and NN Group 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 NN Group NV 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 NN Group i.e., NN Group and Athene Holding go up and down completely randomly.
Pair Corralation between NN Group and Athene Holding
Assuming the 90 days horizon NN Group NV is expected to under-perform the Athene Holding. In addition to that, NN Group is 3.72 times more volatile than Athene Holding. It trades about -0.08 of its total potential returns per unit of risk. Athene Holding is currently generating about 0.11 per unit of volatility. If you would invest 2,475 in Athene Holding on September 2, 2024 and sell it today you would earn a total of 55.00 from holding Athene Holding or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NN Group NV vs. Athene Holding
Performance |
| Timeline |
| NN Group NV |
| Athene Holding |
NN Group and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NN Group and Athene Holding
The main advantage of trading using opposite NN Group and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NN Group 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.| NN Group vs. NN Group NV | NN Group vs. Swiss Life Holding | NN Group vs. PICC Property and | NN Group vs. AXA SA |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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