Correlation Between Aeva Technologies and NGK Spark
Can any of the company-specific risk be diversified away by investing in both Aeva Technologies and NGK Spark 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 NGK Spark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeva Technologies and NGK Spark Plug, you can compare the effects of market volatilities on Aeva Technologies and NGK Spark 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 NGK Spark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies and NGK Spark.
Diversification Opportunities for Aeva Technologies and NGK Spark
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aeva and NGK is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies and NGK Spark Plug in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGK Spark Plug 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 NGK Spark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGK Spark Plug has no effect on the direction of Aeva Technologies i.e., Aeva Technologies and NGK Spark go up and down completely randomly.
Pair Corralation between Aeva Technologies and NGK Spark
If you would invest 421.00 in Aeva Technologies on August 30, 2024 and sell it today you would earn a total of 54.00 from holding Aeva Technologies or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aeva Technologies vs. NGK Spark Plug
Performance |
| Timeline |
| Aeva Technologies |
| NGK Spark Plug |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aeva Technologies and NGK Spark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeva Technologies and NGK Spark
The main advantage of trading using opposite Aeva Technologies and NGK Spark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeva Technologies position performs unexpectedly, NGK Spark 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 NGK Spark will offset losses from the drop in NGK Spark's long position.| Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Hesai Group American | Aeva Technologies vs. Luminar Technologies | Aeva Technologies vs. Aeye Inc |
| NGK Spark vs. DENSO | NGK Spark vs. Bridgestone Corp ADR | NGK Spark vs. American Axle Manufacturing | NGK Spark vs. Dana 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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