Correlation Between ConnectOne Bancorp and ATHENE

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

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

Diversification Opportunities for ConnectOne Bancorp and ATHENE

-0.34

Correlation Coefficient

ConnectOne Bancorp  ATHENE

Very good diversification

The 3 months correlation between ConnectOne and ATHENE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and ATHENE HLDG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HLDG LTD and ConnectOne Bancorp 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 ConnectOne Bancorp are associated (or correlated) with ATHENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HLDG LTD has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and ATHENE go up and down completely randomly.

Pair Corralation between ConnectOne Bancorp and ATHENE

Assuming the 90 days horizon ConnectOne Bancorp is expected to generate 1.58 times more return on investment than ATHENE. However, ConnectOne Bancorp is 1.58 times more volatile than ATHENE HLDG LTD. It trades about 0.12 of its potential returns per unit of risk. ATHENE HLDG LTD is currently generating about -0.03 per unit of risk. If you would invest  1,885  in ConnectOne Bancorp on September 24, 2024 and sell it today you would earn a total of  341.00  from holding ConnectOne Bancorp or generate 18.09% return on investment over 90 days.

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

ConnectOne Bancorp  vs.  ATHENE HLDG LTD

ConnectOne Bancorp

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ConnectOne Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, ConnectOne Bancorp is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

ATHENE HLDG LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATHENE HLDG LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ATHENE HLDG LTD investors.

Pair Trading with ConnectOne Bancorp and ATHENE

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

The idea behind ConnectOne Bancorp and ATHENE HLDG LTD 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.