Correlation Between Fidelis Insurance and Athene Holding

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

By analyzing existing cross correlation between Fidelis Insurance Holdings and Athene Holding, you can compare the effects of market volatilities on Fidelis Insurance 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 Fidelis Insurance with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Athene Holding.

Diversification Opportunities for Fidelis Insurance and Athene Holding

-0.01

Correlation Coefficient

Fidelis Insurance  Athene Holding

Good diversification

The 3 months correlation between Fidelis and Athene is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Fidelis Insurance 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 Fidelis Insurance Holdings 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 has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and Athene Holding go up and down completely randomly.

Pair Corralation between Fidelis Insurance and Athene Holding

Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to under-perform the Athene Holding. In addition to that, Fidelis Insurance is 1.77 times more volatile than Athene Holding. It trades about -0.05 of its total potential returns per unit of risk. Athene Holding is currently generating about 0.02 per unit of volatility. If you would invest  1,962  in Athene Holding on December 29, 2024 and sell it today you would earn a total of  15.00  from holding Athene Holding or generate 0.76% return on investment over 90 days.

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

Fidelis Insurance Holdings  vs.  Athene Holding

Fidelis Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelis Insurance Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Athene Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Athene Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical indicators, Athene Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fidelis Insurance and Athene Holding

The main advantage of trading using opposite Fidelis Insurance and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance 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 Fidelis Insurance Holdings and Athene Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.