Correlation Between Axa SA and Athene Holding
Can any of the company-specific risk be diversified away by investing in both Axa SA 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 Axa SA and Athene Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axa SA ADR and Athene Holding, you can compare the effects of market volatilities on Axa SA 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 Axa SA with a short position of Athene Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa SA and Athene Holding.
Diversification Opportunities for Axa SA and Athene Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axa and Athene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axa SA ADR and Athene Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athene Holding and Axa SA 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 Axa SA ADR 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 has no effect on the direction of Axa SA i.e., Axa SA and Athene Holding go up and down completely randomly.
Pair Corralation between Axa SA and Athene Holding
If you would invest 2,529 in Axa SA ADR on January 20, 2024 and sell it today you would earn a total of 831.00 from holding Axa SA ADR or generate 32.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Axa SA ADR vs. Athene Holding
Performance |
| Timeline |
| Axa SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Athene Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Axa SA and Athene Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa SA and Athene Holding
The main advantage of trading using opposite Axa SA and Athene Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa SA 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 Axa SA ADR and Athene Holding 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.| Athene Holding vs. Mesa Air Group | Athene Holding vs. Global Crossing Airlines | Athene Holding vs. Shoe Carnival | Athene Holding vs. Delta Air Lines |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |