Correlation Between SiriusPoint and Athene Holding
Can any of the company-specific risk be diversified away by investing in both SiriusPoint 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 SiriusPoint and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiriusPoint and Athene Holding, you can compare the effects of market volatilities on SiriusPoint 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 SiriusPoint with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiriusPoint and Athene Holding.
Diversification Opportunities for SiriusPoint and Athene Holding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SiriusPoint and Athene is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SiriusPoint and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and SiriusPoint 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 SiriusPoint 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 SiriusPoint i.e., SiriusPoint and Athene Holding go up and down completely randomly.
Pair Corralation between SiriusPoint and Athene Holding
Assuming the 90 days trading horizon SiriusPoint is expected to generate 1.18 times less return on investment than Athene Holding. In addition to that, SiriusPoint is 1.12 times more volatile than Athene Holding. It trades about 0.05 of its total potential returns per unit of risk. Athene Holding is currently generating about 0.06 per unit of volatility. If you would invest 2,507 in Athene Holding on November 9, 2024 and sell it today you would earn a total of 7.00 from holding Athene Holding or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiriusPoint vs. Athene Holding
Performance |
| Timeline |
| SiriusPoint |
| Athene Holding |
SiriusPoint and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiriusPoint and Athene Holding
The main advantage of trading using opposite SiriusPoint and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiriusPoint 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.| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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