Correlation Between NYSE Composite and Athene Holding
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Athene Holding, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Athene Holding.
Diversification Opportunities for NYSE Composite and Athene Holding
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Athene is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Athene Holding go up and down completely randomly.
Pair Corralation between NYSE Composite and Athene Holding
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.57 times more return on investment than Athene Holding. However, NYSE Composite is 1.77 times less risky than Athene Holding. It trades about 0.08 of its potential returns per unit of risk. Athene Holding is currently generating about 0.04 per unit of risk. If you would invest 1,547,479 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 464,866 from holding NYSE Composite or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Athene Holding
Performance |
| Timeline |
NYSE Composite and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Athene Holding
Pair trading matchups for Athene Holding
Pair Trading with NYSE Composite and Athene Holding
The main advantage of trading using opposite NYSE Composite and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Athene Holding vs. Enstar Group Limited | Athene Holding vs. Equitable Holdings | Athene Holding vs. Athene Holding | Athene Holding vs. Berkshire Hathaway |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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