Correlation Between American Axle and CHARTER
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Axle Manufacturing and CHARTER MUNICATIONS OPER, you can compare the effects of market volatilities on American Axle and CHARTER 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 CHARTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Axle and CHARTER.
Diversification Opportunities for American Axle and CHARTER
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and CHARTER is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and CHARTER MUNICATIONS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHARTER MUNICATIONS OPER 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 CHARTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHARTER MUNICATIONS OPER has no effect on the direction of American Axle i.e., American Axle and CHARTER go up and down completely randomly.
Pair Corralation between American Axle and CHARTER
Considering the 90-day investment horizon American Axle Manufacturing is expected to under-perform the CHARTER. In addition to that, American Axle is 15.46 times more volatile than CHARTER MUNICATIONS OPER. It trades about -0.07 of its total potential returns per unit of risk. CHARTER MUNICATIONS OPER is currently generating about -0.05 per unit of volatility. If you would invest 9,705 in CHARTER MUNICATIONS OPER on November 28, 2024 and sell it today you would lose (32.00) from holding CHARTER MUNICATIONS OPER or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Axle Manufacturing vs. CHARTER MUNICATIONS OPER
Performance |
| Timeline |
| American Axle Manufa |
| CHARTER MUNICATIONS OPER |
American Axle and CHARTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Axle and CHARTER
The main advantage of trading using opposite American Axle and CHARTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Axle position performs unexpectedly, CHARTER 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 CHARTER will offset losses from the drop in CHARTER's long position.| American Axle vs. Lear Corporation | American Axle vs. Commercial Vehicle Group | American Axle vs. Adient PLC | American Axle vs. Gentex |
| CHARTER vs. Monster Beverage Corp | CHARTER vs. BBB Foods | CHARTER vs. Treasury Wine Estates | CHARTER vs. Nascent Wine |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |