Correlation Between ATHENE HOLDING and Gateway Real
Can any of the company-specific risk be diversified away by investing in both ATHENE HOLDING and Gateway Real 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 Gateway Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATHENE HOLDING PRFSERC and Gateway Real Estate, you can compare the effects of market volatilities on ATHENE HOLDING and Gateway Real 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 Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE HOLDING and Gateway Real.
Diversification Opportunities for ATHENE HOLDING and Gateway Real
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATHENE and Gateway is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HOLDING PRFSERC and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate 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 PRFSERC are associated (or correlated) with Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of ATHENE HOLDING i.e., ATHENE HOLDING and Gateway Real go up and down completely randomly.
Pair Corralation between ATHENE HOLDING and Gateway Real
Assuming the 90 days trading horizon ATHENE HOLDING is expected to generate 10.45 times less return on investment than Gateway Real. But when comparing it to its historical volatility, ATHENE HOLDING PRFSERC is 18.7 times less risky than Gateway Real. It trades about 0.09 of its potential returns per unit of risk. Gateway Real Estate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Gateway Real Estate on September 24, 2024 and sell it today you would earn a total of 4.00 from holding Gateway Real Estate or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 97.06% |
Values | Daily Returns |
ATHENE HOLDING PRFSERC vs. Gateway Real Estate
Performance |
Timeline |
ATHENE HOLDING PRFSERC |
Gateway Real Estate |
ATHENE HOLDING and Gateway Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATHENE HOLDING and Gateway Real
The main advantage of trading using opposite ATHENE HOLDING and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENE HOLDING position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real's long position.ATHENE HOLDING vs. Media and Games | ATHENE HOLDING vs. FUTURE GAMING GRP | ATHENE HOLDING vs. MCEWEN MINING INC | ATHENE HOLDING vs. Harmony Gold Mining |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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