Correlation Between Aeva Technologies and Gentex
Can any of the company-specific risk be diversified away by investing in both Aeva Technologies and Gentex 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 Aeva Technologies and Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeva Technologies and Gentex, you can compare the effects of market volatilities on Aeva Technologies and Gentex 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 Aeva Technologies with a short position of Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies and Gentex.
Diversification Opportunities for Aeva Technologies and Gentex
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aeva and Gentex is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex and Aeva Technologies 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 Aeva Technologies are associated (or correlated) with Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of Aeva Technologies i.e., Aeva Technologies and Gentex go up and down completely randomly.
Pair Corralation between Aeva Technologies and Gentex
Given the investment horizon of 90 days Aeva Technologies is expected to generate 4.38 times more return on investment than Gentex. However, Aeva Technologies is 4.38 times more volatile than Gentex. It trades about 0.01 of its potential returns per unit of risk. Gentex is currently generating about 0.03 per unit of risk. If you would invest 795.00 in Aeva Technologies on August 27, 2024 and sell it today you would lose (370.00) from holding Aeva Technologies or give up 46.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeva Technologies vs. Gentex
Performance |
| Timeline |
| Aeva Technologies |
| Gentex |
Aeva Technologies and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeva Technologies and Gentex
The main advantage of trading using opposite Aeva Technologies and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeva Technologies position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Hesai Group American | Aeva Technologies vs. Luminar Technologies | Aeva Technologies vs. Aeye Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |