Correlation Between POSCO Holdings and ATHENE HOLDING
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings 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 POSCO Holdings and ATHENE HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on POSCO Holdings 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 POSCO Holdings with a short position of ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and ATHENE HOLDING.
Diversification Opportunities for POSCO Holdings and ATHENE HOLDING
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POSCO and ATHENE is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings 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 POSCO Holdings 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 POSCO Holdings 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 POSCO Holdings i.e., POSCO Holdings and ATHENE HOLDING go up and down completely randomly.
Pair Corralation between POSCO Holdings and ATHENE HOLDING
Assuming the 90 days horizon POSCO Holdings is expected to under-perform the ATHENE HOLDING. In addition to that, POSCO Holdings is 3.55 times more volatile than ATHENE HOLDING PRFSERC. It trades about -0.27 of its total potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.21 per unit of volatility. If you would invest 2,280 in ATHENE HOLDING PRFSERC on September 3, 2024 and sell it today you would earn a total of 80.00 from holding ATHENE HOLDING PRFSERC or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. ATHENE HOLDING PRFSERC
Performance |
| Timeline |
| POSCO Holdings |
| ATHENE HOLDING PRFSERC |
POSCO Holdings and ATHENE HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and ATHENE HOLDING
The main advantage of trading using opposite POSCO Holdings and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings 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.| POSCO Holdings vs. ArcelorMittal | POSCO Holdings vs. Steel Dynamics | POSCO Holdings vs. NIPPON STEEL SPADR | POSCO Holdings vs. Reliance Steel Aluminum |
| ATHENE HOLDING vs. Berkshire Hathaway | ATHENE HOLDING vs. Allianz SE VNA | ATHENE HOLDING vs. AXA SA | ATHENE HOLDING vs. AXA SA |
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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