Correlation Between Consilium Acquisition and American Axle
Can any of the company-specific risk be diversified away by investing in both Consilium Acquisition and American Axle 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 Consilium Acquisition and American Axle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consilium Acquisition I and American Axle Manufacturing, you can compare the effects of market volatilities on Consilium Acquisition and American Axle 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 Consilium Acquisition with a short position of American Axle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consilium Acquisition and American Axle.
Diversification Opportunities for Consilium Acquisition and American Axle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Consilium and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Consilium Acquisition I and American Axle Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Axle Manufa and Consilium Acquisition 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 Consilium Acquisition I are associated (or correlated) with American Axle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Axle Manufa has no effect on the direction of Consilium Acquisition i.e., Consilium Acquisition and American Axle go up and down completely randomly.
Pair Corralation between Consilium Acquisition and American Axle
If you would invest (100.00) in Consilium Acquisition I on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Consilium Acquisition I or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Consilium Acquisition I vs. American Axle Manufacturing
Performance |
| Timeline |
| Consilium Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| American Axle Manufa |
Consilium Acquisition and American Axle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consilium Acquisition and American Axle
The main advantage of trading using opposite Consilium Acquisition and American Axle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consilium Acquisition position performs unexpectedly, American Axle 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 American Axle will offset losses from the drop in American Axle's long position.| Consilium Acquisition vs. Simpson Manufacturing | Consilium Acquisition vs. CECO Environmental Corp | Consilium Acquisition vs. Catalyst Metals Limited | Consilium Acquisition vs. Trio Tech International |
| American Axle vs. Lear Corporation | American Axle vs. Commercial Vehicle Group | American Axle vs. Adient PLC | American Axle vs. Gentex |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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