Correlation Between 26885BAN0 and American Axle
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By analyzing existing cross correlation between EQM 75 01 JUN 30 and American Axle Manufacturing, you can compare the effects of market volatilities on 26885BAN0 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 26885BAN0 with a short position of American Axle. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26885BAN0 and American Axle.
Diversification Opportunities for 26885BAN0 and American Axle
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 26885BAN0 and American is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding EQM 75 01 JUN 30 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 26885BAN0 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 EQM 75 01 JUN 30 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 26885BAN0 i.e., 26885BAN0 and American Axle go up and down completely randomly.
Pair Corralation between 26885BAN0 and American Axle
Assuming the 90 days trading horizon EQM 75 01 JUN 30 is expected to under-perform the American Axle. But the bond apears to be less risky and, when comparing its historical volatility, EQM 75 01 JUN 30 is 1.22 times less risky than American Axle. The bond trades about -0.19 of its potential returns per unit of risk. The American Axle Manufacturing is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 576.00 in American Axle Manufacturing on September 2, 2024 and sell it today you would earn a total of 85.00 from holding American Axle Manufacturing or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
EQM 75 01 JUN 30 vs. American Axle Manufacturing
Performance |
| Timeline |
| EQM 75 01 |
| American Axle Manufa |
26885BAN0 and American Axle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26885BAN0 and American Axle
The main advantage of trading using opposite 26885BAN0 and American Axle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26885BAN0 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.| 26885BAN0 vs. American Axle Manufacturing | 26885BAN0 vs. Pinterest | 26885BAN0 vs. Warner Music Group | 26885BAN0 vs. U Power Limited |
| American Axle vs. Ford Motor | American Axle vs. General Motors | American Axle vs. Goodyear Tire Rubber | American Axle vs. Li Auto |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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