Correlation Between ATHENE HOLDING and SSE PLC
Can any of the company-specific risk be diversified away by investing in both ATHENE HOLDING and SSE PLC 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 SSE PLC 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 SSE PLC ADR, you can compare the effects of market volatilities on ATHENE HOLDING and SSE PLC 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 SSE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and SSE PLC.
Diversification Opportunities for ATHENE HOLDING and SSE PLC
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATHENE and SSE is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and SSE PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSE PLC ADR 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 SSE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSE PLC ADR has no effect on the direction of ATHENE HOLDING i.e., ATHENE HOLDING and SSE PLC go up and down completely randomly.
Pair Corralation between ATHENE HOLDING and SSE PLC
Assuming the 90 days trading horizon ATHENE HOLDING PRFSERC is expected to generate 0.65 times more return on investment than SSE PLC. However, ATHENE HOLDING PRFSERC is 1.54 times less risky than SSE PLC. It trades about 0.14 of its potential returns per unit of risk. SSE PLC ADR is currently generating about -0.24 per unit of risk. If you would invest 2,320 in ATHENE HOLDING PRFSERC on September 22, 2024 and sell it today you would earn a total of 60.00 from holding ATHENE HOLDING PRFSERC or generate 2.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.65% |
Values | Daily Returns |
ATHENE HOLDING PRFSERC vs. SSE PLC ADR
Performance |
Timeline |
ATHENE HOLDING PRFSERC |
SSE PLC ADR |
ATHENE HOLDING and SSE PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATHENE HOLDING and SSE PLC
The main advantage of trading using opposite ATHENE HOLDING and SSE PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENE HOLDING position performs unexpectedly, SSE PLC 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 SSE PLC will offset losses from the drop in SSE PLC's long position.ATHENE HOLDING vs. Berkshire Hathaway | ATHENE HOLDING vs. Allianz SE VNA | ATHENE HOLDING vs. AXA SA | ATHENE HOLDING vs. AXA SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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