Correlation Between Athene Holding and Sea

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

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

Diversification Opportunities for Athene Holding and Sea

0.11

Correlation Coefficient

Athene Holding  Sea

Average diversification

The 3 months correlation between Athene and Sea is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Athene Holding and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Athene Holding i.e., Athene Holding and Sea go up and down completely randomly.

Pair Corralation between Athene Holding and Sea

Assuming the 90 days trading horizon Athene Holding is expected to generate 2.33 times less return on investment than Sea. But when comparing it to its historical volatility, Athene Holding is 4.24 times less risky than Sea. It trades about 0.13 of its potential returns per unit of risk. Sea is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  14,253  in Sea on May 7, 2025 and sell it today you would earn a total of  1,421  from holding Sea or generate 9.97% return on investment over 90 days.

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

Athene Holding  vs.  Sea

Athene Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Athene Holding are ranked lower than 10 (%) 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 recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Sea

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sea are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Sea may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Athene Holding and Sea

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

The idea behind Athene Holding and Sea 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.