Correlation Between Eagle Mid and ATHENE

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

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

Diversification Opportunities for Eagle Mid and ATHENE

-0.38

Correlation Coefficient

Eagle Mid  ATHENE

Very good diversification

The 3 months correlation between Eagle and ATHENE is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap 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 Eagle Mid 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 Eagle Mid Cap 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 Eagle Mid i.e., Eagle Mid and ATHENE go up and down completely randomly.

Pair Corralation between Eagle Mid and ATHENE

Assuming the 90 days horizon Eagle Mid Cap is expected to generate 1.13 times more return on investment than ATHENE. However, Eagle Mid is 1.13 times more volatile than ATHENE HLDG LTD. It trades about -0.2 of its potential returns per unit of risk. ATHENE HLDG LTD is currently generating about -0.22 per unit of risk. If you would invest  8,554  in Eagle Mid Cap on September 24, 2024 and sell it today you would lose (432.00) from holding Eagle Mid Cap or give up 5.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Eagle Mid Cap  vs.  ATHENE HLDG LTD

Eagle Mid Cap

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mid Cap are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mid may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 Eagle Mid and ATHENE

The main advantage of trading using opposite Eagle Mid and ATHENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid 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 Eagle Mid Cap 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.