Correlation Between PHLX Swiss and American Axle
Can any of the company-specific risk be diversified away by investing in both PHLX Swiss 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 PHLX Swiss and American Axle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHLX Swiss Franc and American Axle Manufacturing, you can compare the effects of market volatilities on PHLX Swiss 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 PHLX Swiss with a short position of American Axle. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHLX Swiss and American Axle.
Diversification Opportunities for PHLX Swiss and American Axle
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHLX and American is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PHLX Swiss Franc 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 PHLX Swiss 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 PHLX Swiss Franc 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 PHLX Swiss i.e., PHLX Swiss and American Axle go up and down completely randomly.
Pair Corralation between PHLX Swiss and American Axle
Assuming the 90 days trading horizon PHLX Swiss Franc is expected to generate 0.17 times more return on investment than American Axle. However, PHLX Swiss Franc is 5.78 times less risky than American Axle. It trades about 0.02 of its potential returns per unit of risk. American Axle Manufacturing is currently generating about -0.01 per unit of risk. If you would invest 10,762 in PHLX Swiss Franc on September 3, 2024 and sell it today you would earn a total of 593.00 from holding PHLX Swiss Franc or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
PHLX Swiss Franc vs. American Axle Manufacturing
Performance |
| Timeline |
PHLX Swiss and American Axle Volatility Contrast
Predicted Return Density |
| Returns |
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
American Axle Manufacturing
Pair trading matchups for American Axle
Pair Trading with PHLX Swiss and American Axle
The main advantage of trading using opposite PHLX Swiss and American Axle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHLX Swiss 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.| PHLX Swiss vs. American Axle Manufacturing | PHLX Swiss vs. VirnetX Holding Corp | PHLX Swiss vs. Tesla Inc | PHLX Swiss vs. Q2 Holdings |
| American Axle vs. Allison Transmission Holdings | American Axle vs. Aptiv PLC | American Axle vs. LKQ Corporation | American Axle vs. Lear Corporation |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |