Correlation Between ATHENE HOLDING and ÖKOWORLD

Can any of the company-specific risk be diversified away by investing in both ATHENE HOLDING and ÖKOWORLD 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 ÖKOWORLD 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 KOWORLD AG, you can compare the effects of market volatilities on ATHENE HOLDING and ÖKOWORLD 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 ÖKOWORLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and ÖKOWORLD.

Diversification Opportunities for ATHENE HOLDING and ÖKOWORLD

-0.71

Correlation Coefficient

ATHENE HOLDING  ÖKOWORLD

Pay attention - limited upside

The 3 months correlation between ATHENE and ÖKOWORLD is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and KOWORLD AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOWORLD AG 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 ÖKOWORLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOWORLD AG has no effect on the direction of ATHENE HOLDING i.e., ATHENE HOLDING and ÖKOWORLD go up and down completely randomly.

Pair Corralation between ATHENE HOLDING and ÖKOWORLD

Assuming the 90 days trading horizon ATHENE HOLDING PRFSERC is expected to generate 0.36 times more return on investment than ÖKOWORLD. However, ATHENE HOLDING PRFSERC is 2.75 times less risky than ÖKOWORLD. It trades about 0.21 of its potential returns per unit of risk. KOWORLD AG is currently generating about -0.05 per unit of risk. If you would invest  2,222  in ATHENE HOLDING PRFSERC on October 15, 2024 and sell it today you would earn a total of  198.00  from holding ATHENE HOLDING PRFSERC or generate 8.91% return on investment over 90 days.

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

ATHENE HOLDING PRFSERC  vs.  KOWORLD AG

ATHENE HOLDING PRFSERC

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ATHENE HOLDING PRFSERC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATHENE HOLDING may actually be approaching a critical reversion point that can send shares even higher in February 2025.

KOWORLD AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KOWORLD AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ATHENE HOLDING and ÖKOWORLD

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

The idea behind ATHENE HOLDING PRFSERC and KOWORLD AG 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.