Correlation Between Aeva Technologies, and Aeye
Can any of the company-specific risk be diversified away by investing in both Aeva Technologies, and Aeye 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 Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeva Technologies, Common and Aeye Inc, you can compare the effects of market volatilities on Aeva Technologies, and Aeye 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 Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies, and Aeye.
Diversification Opportunities for Aeva Technologies, and Aeye
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aeva and Aeye is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies, Common and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc 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, Common are associated (or correlated) with Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of Aeva Technologies, i.e., Aeva Technologies, and Aeye go up and down completely randomly.
Pair Corralation between Aeva Technologies, and Aeye
Given the investment horizon of 90 days Aeva Technologies, Common is expected to generate 0.61 times more return on investment than Aeye. However, Aeva Technologies, Common is 1.63 times less risky than Aeye. It trades about -0.07 of its potential returns per unit of risk. Aeye Inc is currently generating about -0.29 per unit of risk. If you would invest 445.00 in Aeva Technologies, Common on November 18, 2024 and sell it today you would lose (22.00) from holding Aeva Technologies, Common or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeva Technologies, Common vs. Aeye Inc
Performance |
| Timeline |
| Aeva Technologies, Common |
| Aeye Inc |
Aeva Technologies, and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeva Technologies, and Aeye
The main advantage of trading using opposite Aeva Technologies, and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeva Technologies, position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.| Aeva Technologies, vs. Innoviz Technologies | Aeva Technologies, vs. Hesai Group American | Aeva Technologies, vs. Luminar Technologies | Aeva Technologies, vs. Aeye Inc |
| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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