Correlation Between ACG Metals and American Axle
Can any of the company-specific risk be diversified away by investing in both ACG Metals and American Axle 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 ACG Metals and American Axle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and American Axle Manufacturing, you can compare the effects of market volatilities on ACG Metals and American Axle 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 ACG Metals with a short position of American Axle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and American Axle.
Diversification Opportunities for ACG Metals and American Axle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and American Axle Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Axle Manufa and ACG Metals 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 ACG Metals Limited are associated (or correlated) with American Axle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Axle Manufa has no effect on the direction of ACG Metals i.e., ACG Metals and American Axle go up and down completely randomly.
Pair Corralation between ACG Metals and American Axle
If you would invest 580.00 in American Axle Manufacturing on September 3, 2024 and sell it today you would earn a total of 81.00 from holding American Axle Manufacturing or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Metals Limited vs. American Axle Manufacturing
Performance |
| Timeline |
| ACG Metals Limited |
| American Axle Manufa |
ACG Metals and American Axle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and American Axle
The main advantage of trading using opposite ACG Metals and American Axle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals position performs unexpectedly, American Axle 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 American Axle will offset losses from the drop in American Axle's long position.| ACG Metals vs. ServiceNow | ACG Metals vs. Pinterest | ACG Metals vs. Wicket Gaming AB | ACG Metals vs. The9 Ltd ADR |
| American Axle vs. Allison Transmission Holdings | American Axle vs. Aptiv PLC | American Axle vs. LKQ Corporation | American Axle vs. Lear Corporation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |