Correlation Between American Axle and WiMi Hologram
Can any of the company-specific risk be diversified away by investing in both American Axle and WiMi Hologram 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 American Axle and WiMi Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Axle Manufacturing and WiMi Hologram Cloud, you can compare the effects of market volatilities on American Axle and WiMi Hologram 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 Axle with a short position of WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Axle and WiMi Hologram.
Diversification Opportunities for American Axle and WiMi Hologram
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and WiMi is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud and American Axle 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 WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of American Axle i.e., American Axle and WiMi Hologram go up and down completely randomly.
Pair Corralation between American Axle and WiMi Hologram
Considering the 90-day investment horizon American Axle Manufacturing is expected to under-perform the WiMi Hologram. But the stock apears to be less risky and, when comparing its historical volatility, American Axle Manufacturing is 4.48 times less risky than WiMi Hologram. The stock trades about -0.14 of its potential returns per unit of risk. The WiMi Hologram Cloud is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 86.00 in WiMi Hologram Cloud on December 3, 2024 and sell it today you would lose (8.00) from holding WiMi Hologram Cloud or give up 9.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
American Axle Manufacturing vs. WiMi Hologram Cloud
Performance |
Timeline |
American Axle Manufa |
WiMi Hologram Cloud |
American Axle and WiMi Hologram Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Axle and WiMi Hologram
The main advantage of trading using opposite American Axle and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Axle position performs unexpectedly, WiMi Hologram 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 WiMi Hologram will offset losses from the drop in WiMi Hologram's long position.American Axle vs. Lear Corporation | American Axle vs. Commercial Vehicle Group | American Axle vs. Adient PLC | American Axle vs. Gentex |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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