Correlation Between American Axle and 709599AX2
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Axle Manufacturing and US709599AX20, you can compare the effects of market volatilities on American Axle and 709599AX2 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 709599AX2. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Axle and 709599AX2.
Diversification Opportunities for American Axle and 709599AX2
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 709599AX2 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and US709599AX20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US709599AX20 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 709599AX2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US709599AX20 has no effect on the direction of American Axle i.e., American Axle and 709599AX2 go up and down completely randomly.
Pair Corralation between American Axle and 709599AX2
Considering the 90-day investment horizon American Axle Manufacturing is expected to generate 2.94 times more return on investment than 709599AX2. However, American Axle is 2.94 times more volatile than US709599AX20. It trades about 0.07 of its potential returns per unit of risk. US709599AX20 is currently generating about -0.36 per unit of risk. If you would invest 630.00 in American Axle Manufacturing on August 27, 2024 and sell it today you would earn a total of 22.00 from holding American Axle Manufacturing or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
American Axle Manufacturing vs. US709599AX20
Performance |
| Timeline |
| American Axle Manufa |
| US709599AX20 |
American Axle and 709599AX2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Axle and 709599AX2
The main advantage of trading using opposite American Axle and 709599AX2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Axle position performs unexpectedly, 709599AX2 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 709599AX2 will offset losses from the drop in 709599AX2's long position.| American Axle vs. Lear Corporation | American Axle vs. Commercial Vehicle Group | American Axle vs. Adient PLC | American Axle vs. Gentex |
| 709599AX2 vs. Ferrari NV | 709599AX2 vs. Golden Matrix Group | 709599AX2 vs. Thor Industries | 709599AX2 vs. American Axle Manufacturing |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |