Correlation Between ATHENE and Dana

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

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

Diversification Opportunities for ATHENE and Dana

0.15

Correlation Coefficient

ATHENE  Dana

Average diversification

The 3 months correlation between ATHENE and Dana is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HLDG LTD and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and ATHENE 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 ATHENE HLDG LTD are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of ATHENE i.e., ATHENE and Dana go up and down completely randomly.

Pair Corralation between ATHENE and Dana

Assuming the 90 days trading horizon ATHENE HLDG LTD is expected to generate 0.26 times more return on investment than Dana. However, ATHENE HLDG LTD is 3.77 times less risky than Dana. It trades about 0.0 of its potential returns per unit of risk. Dana Inc is currently generating about -0.02 per unit of risk. If you would invest  9,246  in ATHENE HLDG LTD on October 12, 2024 and sell it today you would earn a total of  15.00  from holding ATHENE HLDG LTD or generate 0.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.75%
Values	Daily Returns

ATHENE HLDG LTD  vs.  Dana Inc

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 somewhat strong basic indicators, ATHENE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dana Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dana Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Dana may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with ATHENE and Dana

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

The idea behind ATHENE HLDG LTD and Dana Inc 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.