Correlation Between Palmer Square and ATHENE
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By analyzing existing cross correlation between Palmer Square Ultra Short and ATHENE HLDG LTD, you can compare the effects of market volatilities on Palmer Square 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 Palmer Square with a short position of ATHENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palmer Square and ATHENE.
Diversification Opportunities for Palmer Square and ATHENE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Palmer and ATHENE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Palmer Square Ultra Short 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 Palmer Square 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 Palmer Square Ultra Short 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 Palmer Square i.e., Palmer Square and ATHENE go up and down completely randomly.
Pair Corralation between Palmer Square and ATHENE
Assuming the 90 days horizon Palmer Square Ultra Short is expected to generate 0.03 times more return on investment than ATHENE. However, Palmer Square Ultra Short is 39.79 times less risky than ATHENE. It trades about 0.53 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 2,005 in Palmer Square Ultra Short on September 24, 2024 and sell it today you would earn a total of 6.00 from holding Palmer Square Ultra Short or generate 0.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Palmer Square Ultra Short vs. ATHENE HLDG LTD
Performance |
Timeline |
Palmer Square Ultra |
ATHENE HLDG LTD |
Palmer Square and ATHENE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palmer Square and ATHENE
The main advantage of trading using opposite Palmer Square and ATHENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palmer Square 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.Palmer Square vs. Palmer Square Ssi | Palmer Square vs. Short Term Income Fund | Palmer Square vs. Palmer Square Income | Palmer Square vs. Acm Dynamic Opportunity |
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Check out your portfolio center.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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