Correlation Between Aeva Technologies and Superior Industries
Can any of the company-specific risk be diversified away by investing in both Aeva Technologies and Superior Industries 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 Superior Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeva Technologies and Superior Industries International, you can compare the effects of market volatilities on Aeva Technologies and Superior Industries 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 Superior Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies and Superior Industries.
Diversification Opportunities for Aeva Technologies and Superior Industries
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aeva and Superior is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies and Superior Industries Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Industries 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 Superior Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Industries has no effect on the direction of Aeva Technologies i.e., Aeva Technologies and Superior Industries go up and down completely randomly.
Pair Corralation between Aeva Technologies and Superior Industries
Given the investment horizon of 90 days Aeva Technologies is expected to generate 1.76 times more return on investment than Superior Industries. However, Aeva Technologies is 1.76 times more volatile than Superior Industries International. It trades about 0.01 of its potential returns per unit of risk. Superior Industries International is currently generating about -0.03 per unit of risk. If you would invest 690.00 in Aeva Technologies on August 31, 2024 and sell it today you would lose (230.00) from holding Aeva Technologies or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeva Technologies vs. Superior Industries Internatio
Performance |
| Timeline |
| Aeva Technologies |
| Superior Industries |
Aeva Technologies and Superior Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeva Technologies and Superior Industries
The main advantage of trading using opposite Aeva Technologies and Superior Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeva Technologies position performs unexpectedly, Superior Industries 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 Superior Industries will offset losses from the drop in Superior Industries' long position.| Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Hesai Group American | Aeva Technologies vs. Luminar Technologies | Aeva Technologies vs. Aeye Inc |
| Superior Industries vs. Monro Muffler Brake | Superior Industries vs. Dorman Products | Superior Industries vs. Motorcar Parts of | Superior Industries vs. Gentherm |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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