Correlation Between Athene Holding and Ageas SA/NV

Can any of the company-specific risk be diversified away by investing in both Athene Holding and Ageas SA/NV 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 Athene Holding and Ageas SA/NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Athene Holding and ageas SANV, you can compare the effects of market volatilities on Athene Holding and Ageas SA/NV 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 Athene Holding with a short position of Ageas SA/NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Ageas SA/NV.

Diversification Opportunities for Athene Holding and Ageas SA/NV

0.7

Correlation Coefficient

Athene Holding  Ageas SA/NV

Poor diversification

The 3 months correlation between Athene and Ageas is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV and Athene Holding 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 Athene Holding are associated (or correlated) with Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of Athene Holding i.e., Athene Holding and Ageas SA/NV go up and down completely randomly.

Pair Corralation between Athene Holding and Ageas SA/NV

Assuming the 90 days trading horizon Athene Holding is expected to generate 0.99 times more return on investment than Ageas SA/NV. However, Athene Holding is 1.01 times less risky than Ageas SA/NV. It trades about 0.0 of its potential returns per unit of risk. ageas SANV is currently generating about -0.01 per unit of risk. If you would invest  2,205  in Athene Holding on August 31, 2024 and sell it today you would lose (13.00) from holding Athene Holding or give up 0.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Athene Holding  vs.  ageas SANV

Athene Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athene Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Athene Holding is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Ageas SA/NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ageas SANV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ageas SA/NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Athene Holding and Ageas SA/NV

The main advantage of trading using opposite Athene Holding and Ageas SA/NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athene Holding position performs unexpectedly, Ageas SA/NV 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 Ageas SA/NV will offset losses from the drop in Ageas SA/NV's long position.

The idea behind Athene Holding and ageas SANV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.