Correlation Between Voya Financial and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Voya Financial 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 Voya Financial and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Financial and Athene Holding, you can compare the effects of market volatilities on Voya Financial 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 Voya Financial with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Financial and Athene Holding.
Diversification Opportunities for Voya Financial and Athene Holding
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Athene is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Voya Financial 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 Voya Financial 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 Voya Financial i.e., Voya Financial and Athene Holding go up and down completely randomly.
Pair Corralation between Voya Financial and Athene Holding
Given the investment horizon of 90 days Voya Financial is expected to generate 3.75 times more return on investment than Athene Holding. However, Voya Financial is 3.75 times more volatile than Athene Holding. It trades about 0.08 of its potential returns per unit of risk. Athene Holding is currently generating about 0.16 per unit of risk. If you would invest 7,986 in Voya Financial on September 1, 2024 and sell it today you would earn a total of 314.00 from holding Voya Financial or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Financial vs. Athene Holding
Performance |
| Timeline |
| Voya Financial |
| Athene Holding |
Voya Financial and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Financial and Athene Holding
The main advantage of trading using opposite Voya Financial and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial 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.| Voya Financial vs. Lendingtree | Voya Financial vs. Voya Financial | Voya Financial vs. B Riley Financial | Voya Financial vs. B Riley Financial |
| Athene Holding vs. Arch Capital Group | Athene Holding vs. The Allstate | Athene Holding vs. Brighthouse Financial | Athene Holding vs. Athene Holding |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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