Correlation Between ATHENE and American Axle
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By analyzing existing cross correlation between ATHENE HLDG LTD and American Axle Manufacturing, you can compare the effects of market volatilities on ATHENE 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 ATHENE with a short position of American Axle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATHENE and American Axle.
Diversification Opportunities for ATHENE and American Axle
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ATHENE and American is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ATHENE HLDG LTD 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 ATHENE 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 ATHENE HLDG LTD 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 ATHENE i.e., ATHENE and American Axle go up and down completely randomly.
Pair Corralation between ATHENE and American Axle
Assuming the 90 days trading horizon ATHENE HLDG LTD is expected to generate 0.54 times more return on investment than American Axle. However, ATHENE HLDG LTD is 1.86 times less risky than American Axle. It trades about -0.22 of its potential returns per unit of risk. American Axle Manufacturing is currently generating about -0.38 per unit of risk. If you would invest 9,776 in ATHENE HLDG LTD on September 24, 2024 and sell it today you would lose (518.00) from holding ATHENE HLDG LTD or give up 5.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
ATHENE HLDG LTD vs. American Axle Manufacturing
Performance |
Timeline |
ATHENE HLDG LTD |
American Axle Manufa |
ATHENE and American Axle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATHENE and American Axle
The main advantage of trading using opposite ATHENE and American Axle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENE 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.ATHENE vs. Dana Inc | ATHENE vs. American Axle Manufacturing | ATHENE vs. Enlight Renewable Energy | ATHENE vs. Marine Products |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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