Correlation Between Athene Holding and Fidelis Insurance

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

By analyzing existing cross correlation between Athene Holding and Fidelis Insurance Holdings, you can compare the effects of market volatilities on Athene Holding and Fidelis Insurance 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 Fidelis Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athene Holding and Fidelis Insurance.

Diversification Opportunities for Athene Holding and Fidelis Insurance

-0.02

Correlation Coefficient

Athene Holding  Fidelis Insurance

Good diversification

The 3 months correlation between Athene and Fidelis is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Fidelis Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelis Insurance 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 Fidelis Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelis Insurance has no effect on the direction of Athene Holding i.e., Athene Holding and Fidelis Insurance go up and down completely randomly.

Pair Corralation between Athene Holding and Fidelis Insurance

Assuming the 90 days trading horizon Athene Holding is expected to generate 4532.18 times less return on investment than Fidelis Insurance. But when comparing it to its historical volatility, Athene Holding is 43.59 times less risky than Fidelis Insurance. It trades about 0.0 of its potential returns per unit of risk. Fidelis Insurance Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Fidelis Insurance Holdings on January 28, 2024 and sell it today you would earn a total of  1,950  from holding Fidelis Insurance Holdings or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	67.74%
Values	Daily Returns

Athene Holding  vs.  Fidelis Insurance Holdings

Athene Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athene Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Athene Holding is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Fidelis Insurance

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelis Insurance Holdings are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain technical indicators, Fidelis Insurance disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Athene Holding and Fidelis Insurance

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

The idea behind Athene Holding and Fidelis Insurance Holdings 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.