Correlation Between Athene Holding and Ageas SA/NV

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

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

Diversification Opportunities for Athene Holding and Ageas SA/NV

0.59

Correlation Coefficient

Athene Holding  Ageas SA/NV

Very weak diversification

The 3 months correlation between Athene and Ageas is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV and Athene Holding 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 Holding are associated (or correlated) with Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of Athene Holding i.e., Athene Holding and Ageas SA/NV go up and down completely randomly.

Pair Corralation between Athene Holding and Ageas SA/NV

Assuming the 90 days trading horizon Athene Holding is expected to generate 7.18 times less return on investment than Ageas SA/NV. But when comparing it to its historical volatility, Athene Holding is 7.76 times less risky than Ageas SA/NV. It trades about 0.11 of its potential returns per unit of risk. ageas SANV is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  4,577  in ageas SANV on August 31, 2024 and sell it today you would earn a total of  688.00  from holding ageas SANV or generate 15.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Athene Holding  vs.  ageas SANV

Athene Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Athene Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Athene Holding is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ageas SA/NV

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ageas SANV are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Ageas SA/NV reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Athene Holding and Ageas SA/NV

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

The idea behind Athene Holding and ageas SANV 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.