Correlation Between ATHENE HOLDING and Media

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

By analyzing existing cross correlation between ATHENE HOLDING PRFSERC and Media and Games, you can compare the effects of market volatilities on ATHENE HOLDING and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and Media.

Diversification Opportunities for ATHENE HOLDING and Media

0.17

Correlation Coefficient

ATHENE HOLDING  Media

Average diversification

The 3 months correlation between ATHENE and Media is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 PRFSERC are associated (or correlated) with Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of ATHENE HOLDING i.e., ATHENE HOLDING and Media go up and down completely randomly.

Pair Corralation between ATHENE HOLDING and Media

Assuming the 90 days trading horizon ATHENE HOLDING is expected to generate 9.06 times less return on investment than Media. But when comparing it to its historical volatility, ATHENE HOLDING PRFSERC is 5.71 times less risky than Media. It trades about 0.09 of its potential returns per unit of risk. Media and Games is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Media and Games on October 2, 2024 and sell it today you would earn a total of  215.00  from holding Media and Games or generate 215.0% return on investment over 90 days.

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

ATHENE HOLDING PRFSERC  vs.  Media and Games

ATHENE HOLDING PRFSERC

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATHENE HOLDING PRFSERC are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ATHENE HOLDING may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Media and Games

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Media and Games has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with ATHENE HOLDING and Media

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

The idea behind ATHENE HOLDING PRFSERC and Media and Games 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.