Correlation Between American and Dow Jones
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By analyzing existing cross correlation between American Axle Manufacturing and Dow Jones Industrial, you can compare the effects of market volatilities on American and Dow Jones 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 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of American and Dow Jones.
Diversification Opportunities for American and Dow Jones
Pay attention - limited upside
The 3 months correlation between American and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and American 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of American i.e., American and Dow Jones go up and down completely randomly.
Pair Corralation between American and Dow Jones
If you would invest 3,522,518 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 902,265 from holding Dow Jones Industrial or generate 25.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
American Axle Manufacturing vs. Dow Jones Industrial
Performance |
| Timeline |
American and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
American Axle Manufacturing
Pair trading matchups for American
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with American and Dow Jones
The main advantage of trading using opposite American and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| American vs. Pinterest | American vs. Grocery Outlet Holding | American vs. Kandi Technologies Group | American vs. ATRenew Inc DRC |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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