Correlation Between American Axle and 548661EH6
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Axle Manufacturing and LOW 375 01 APR 32, you can compare the effects of market volatilities on American Axle and 548661EH6 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 548661EH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Axle and 548661EH6.
Diversification Opportunities for American Axle and 548661EH6
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 548661EH6 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and LOW 375 01 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOW 375 01 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 548661EH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOW 375 01 has no effect on the direction of American Axle i.e., American Axle and 548661EH6 go up and down completely randomly.
Pair Corralation between American Axle and 548661EH6
Considering the 90-day investment horizon American Axle is expected to generate 16.86 times less return on investment than 548661EH6. In addition to that, American Axle is 5.24 times more volatile than LOW 375 01 APR 32. It trades about 0.0 of its total potential returns per unit of risk. LOW 375 01 APR 32 is currently generating about 0.02 per unit of volatility. If you would invest 8,835 in LOW 375 01 APR 32 on September 14, 2024 and sell it today you would earn a total of 254.00 from holding LOW 375 01 APR 32 or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.88% |
| Values | Daily Returns |
American Axle Manufacturing vs. LOW 375 01 APR 32
Performance |
| Timeline |
| American Axle Manufa |
| LOW 375 01 |
American Axle and 548661EH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Axle and 548661EH6
The main advantage of trading using opposite American Axle and 548661EH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Axle position performs unexpectedly, 548661EH6 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 548661EH6 will offset losses from the drop in 548661EH6's long position.| American Axle vs. Ford Motor | American Axle vs. General Motors | American Axle vs. Goodyear Tire Rubber | American Axle vs. Li Auto |
| 548661EH6 vs. U Power Limited | 548661EH6 vs. Aeye Inc | 548661EH6 vs. American Axle Manufacturing | 548661EH6 vs. Tesla Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |