Correlation Between Athene Holding and Sampo Oyj

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

By analyzing existing cross correlation between Athene Holding and Sampo Oyj, you can compare the effects of market volatilities on Athene Holding and Sampo Oyj 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 Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Sampo Oyj.

Diversification Opportunities for Athene Holding and Sampo Oyj

-0.66

Correlation Coefficient

Athene Holding  Sampo Oyj

Excellent diversification

The 3 months correlation between Athene and Sampo is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Sampo Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj has no effect on the direction of Athene Holding i.e., Athene Holding and Sampo Oyj go up and down completely randomly.

Pair Corralation between Athene Holding and Sampo Oyj

Assuming the 90 days trading horizon Athene Holding is expected to generate 1088.97 times less return on investment than Sampo Oyj. But when comparing it to its historical volatility, Athene Holding is 546.39 times less risky than Sampo Oyj. It trades about 0.08 of its potential returns per unit of risk. Sampo Oyj is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,089  in Sampo Oyj on December 29, 2024 and sell it today you would lose (3,089) from holding Sampo Oyj or give up 75.54% of portfolio value over 90 days.

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

Athene Holding  vs.  Sampo Oyj

Athene Holding

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Athene Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Athene Holding is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Sampo Oyj

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sampo Oyj are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sampo Oyj reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Athene Holding and Sampo Oyj

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

The idea behind Athene Holding and Sampo Oyj 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..