Correlation Between American Axle and GBLATL
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By analyzing existing cross correlation between American Axle Manufacturing and GBLATL 3125 15 JUN 31, you can compare the effects of market volatilities on American Axle and GBLATL 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 GBLATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Axle and GBLATL.
Diversification Opportunities for American Axle and GBLATL
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and GBLATL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and GBLATL 3125 15 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBLATL 3125 15 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 GBLATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBLATL 3125 15 has no effect on the direction of American Axle i.e., American Axle and GBLATL go up and down completely randomly.
Pair Corralation between American Axle and GBLATL
Considering the 90-day investment horizon American Axle Manufacturing is expected to generate 0.8 times more return on investment than GBLATL. However, American Axle Manufacturing is 1.26 times less risky than GBLATL. It trades about 0.24 of its potential returns per unit of risk. GBLATL 3125 15 JUN 31 is currently generating about -0.23 per unit of risk. If you would invest 576.00 in American Axle Manufacturing on September 2, 2024 and sell it today you would earn a total of 85.00 from holding American Axle Manufacturing or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
American Axle Manufacturing vs. GBLATL 3125 15 JUN 31
Performance |
| Timeline |
| American Axle Manufa |
| GBLATL 3125 15 |
American Axle and GBLATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Axle and GBLATL
The main advantage of trading using opposite American Axle and GBLATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Axle position performs unexpectedly, GBLATL 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 GBLATL will offset losses from the drop in GBLATL's long position.| American Axle vs. Ford Motor | American Axle vs. General Motors | American Axle vs. Goodyear Tire Rubber | American Axle vs. Li Auto |
| GBLATL vs. Cars Inc | GBLATL vs. Uber Technologies | GBLATL vs. American Axle Manufacturing | GBLATL vs. Adient PLC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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