Correlation Between American Axle and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both American Axle and Banpu PCL 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 American Axle and Banpu PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Axle Manufacturing and Banpu PCL ADR, you can compare the effects of market volatilities on American Axle and Banpu PCL 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 American Axle with a short position of Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Axle and Banpu PCL.
Diversification Opportunities for American Axle and Banpu PCL
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Banpu is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR and American Axle 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 American Axle Manufacturing are associated (or correlated) with Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of American Axle i.e., American Axle and Banpu PCL go up and down completely randomly.
Pair Corralation between American Axle and Banpu PCL
If you would invest 614.00 in American Axle Manufacturing on September 13, 2024 and sell it today you would earn a total of 60.00 from holding American Axle Manufacturing or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
American Axle Manufacturing vs. Banpu PCL ADR
Performance |
| Timeline |
| American Axle Manufa |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Axle and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Axle and Banpu PCL
The main advantage of trading using opposite American Axle and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Axle position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.| American Axle vs. Ford Motor | American Axle vs. General Motors | American Axle vs. Goodyear Tire Rubber | American Axle vs. Li Auto |
| Banpu PCL vs. American Axle Manufacturing | Banpu PCL vs. FDG Electric Vehicles | Banpu PCL vs. Gentex | Banpu PCL vs. Li Auto |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |