Correlation Between Assicurazioni Generali and ATHENE HOLDING

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

By analyzing existing cross correlation between Assicurazioni Generali SpA and ATHENE HOLDING PRFSERC, you can compare the effects of market volatilities on Assicurazioni Generali 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 Assicurazioni Generali with a short position of ATHENE HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and ATHENE HOLDING.

Diversification Opportunities for Assicurazioni Generali and ATHENE HOLDING

0.7

Correlation Coefficient

Assicurazioni Generali  ATHENE HOLDING

Poor diversification

The 3 months correlation between Assicurazioni and ATHENE is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and ATHENE HOLDING PRFSERC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HOLDING PRFSERC and Assicurazioni Generali 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 Assicurazioni Generali SpA 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 PRFSERC has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and ATHENE HOLDING go up and down completely randomly.

Pair Corralation between Assicurazioni Generali and ATHENE HOLDING

Assuming the 90 days trading horizon Assicurazioni Generali SpA is expected to under-perform the ATHENE HOLDING. In addition to that, Assicurazioni Generali is 1.64 times more volatile than ATHENE HOLDING PRFSERC. It trades about -0.03 of its total potential returns per unit of risk. ATHENE HOLDING PRFSERC is currently generating about 0.12 per unit of volatility. If you would invest  2,320  in ATHENE HOLDING PRFSERC on September 26, 2024 and sell it today you would earn a total of  40.00  from holding ATHENE HOLDING PRFSERC or generate 1.72% return on investment over 90 days.

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

Assicurazioni Generali SpA  vs.  ATHENE HOLDING PRFSERC

Assicurazioni Generali

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Assicurazioni Generali SpA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Assicurazioni Generali is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ATHENE HOLDING PRFSERC

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATHENE HOLDING PRFSERC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ATHENE HOLDING may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Assicurazioni Generali and ATHENE HOLDING

The main advantage of trading using opposite Assicurazioni Generali and ATHENE HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali 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 Assicurazioni Generali SpA and ATHENE HOLDING PRFSERC 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.