Correlation Between Innoviz Technologies and American Axle
Can any of the company-specific risk be diversified away by investing in both Innoviz Technologies 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 Innoviz Technologies and American Axle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innoviz Technologies and American Axle Manufacturing, you can compare the effects of market volatilities on Innoviz Technologies 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 Innoviz Technologies with a short position of American Axle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innoviz Technologies and American Axle.
Diversification Opportunities for Innoviz Technologies and American Axle
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innoviz and American is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies 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 Innoviz Technologies 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 Innoviz Technologies 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 Innoviz Technologies i.e., Innoviz Technologies and American Axle go up and down completely randomly.
Pair Corralation between Innoviz Technologies and American Axle
Given the investment horizon of 90 days Innoviz Technologies is expected to under-perform the American Axle. In addition to that, Innoviz Technologies is 1.92 times more volatile than American Axle Manufacturing. It trades about -0.05 of its total potential returns per unit of risk. American Axle Manufacturing is currently generating about -0.01 per unit of volatility. If you would invest 930.00 in American Axle Manufacturing on August 30, 2024 and sell it today you would lose (260.00) from holding American Axle Manufacturing or give up 27.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innoviz Technologies vs. American Axle Manufacturing
Performance |
| Timeline |
| Innoviz Technologies |
| American Axle Manufa |
Innoviz Technologies and American Axle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innoviz Technologies and American Axle
The main advantage of trading using opposite Innoviz Technologies and American Axle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innoviz Technologies 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.| Innoviz Technologies vs. Aeye Inc | Innoviz Technologies vs. Luminar Technologies | Innoviz Technologies vs. Hesai Group American | Innoviz Technologies vs. Mobileye Global Class |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |