Correlation Between BlackRock and ATHENE HOLDING

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

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

Diversification Opportunities for BlackRock and ATHENE HOLDING

0.91

Correlation Coefficient

BlackRock  ATHENE HOLDING

Almost no diversification

The 3 months correlation between BlackRock and ATHENE is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC and BlackRock 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 BlackRock are associated (or correlated) with ATHENE HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HOLDING PRFSERC has no effect on the direction of BlackRock i.e., BlackRock and ATHENE HOLDING go up and down completely randomly.

Pair Corralation between BlackRock and ATHENE HOLDING

Assuming the 90 days trading horizon BlackRock is expected to under-perform the ATHENE HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, BlackRock is 1.14 times less risky than ATHENE HOLDING. The stock trades about -0.37 of its potential returns per unit of risk. The ATHENE HOLDING PRFSERC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,360  in ATHENE HOLDING PRFSERC on September 23, 2024 and sell it today you would earn a total of  20.00  from holding ATHENE HOLDING PRFSERC or generate 0.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	36.36%
Values	Daily Returns

BlackRock  vs.  ATHENE HOLDING PRFSERC

BlackRock

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days BlackRock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, BlackRock reported solid returns over the last few months and may actually be approaching a breakup point.

ATHENE HOLDING PRFSERC

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATHENE HOLDING PRFSERC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ATHENE HOLDING may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with BlackRock and ATHENE HOLDING

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

The idea behind BlackRock and ATHENE HOLDING PRFSERC 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.