Correlation Between Arqit Quantum and AEye
Can any of the company-specific risk be diversified away by investing in both Arqit Quantum 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 Arqit Quantum and AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arqit Quantum Warrants and AEye Inc, you can compare the effects of market volatilities on Arqit Quantum 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 Arqit Quantum with a short position of AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arqit Quantum and AEye.
Diversification Opportunities for Arqit Quantum and AEye
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Arqit and AEye is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Arqit Quantum Warrants and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc and Arqit Quantum 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 Arqit Quantum Warrants 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 Arqit Quantum i.e., Arqit Quantum and AEye go up and down completely randomly.
Pair Corralation between Arqit Quantum and AEye
Assuming the 90 days horizon Arqit Quantum Warrants is expected to generate 6.66 times more return on investment than AEye. However, Arqit Quantum is 6.66 times more volatile than AEye Inc. It trades about 0.22 of its potential returns per unit of risk. AEye Inc is currently generating about 0.09 per unit of risk. If you would invest 37.00 in Arqit Quantum Warrants on November 3, 2024 and sell it today you would earn a total of 266.00 from holding Arqit Quantum Warrants or generate 718.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arqit Quantum Warrants vs. AEye Inc
Performance |
| Timeline |
| Arqit Quantum Warrants |
| AEye Inc |
Arqit Quantum and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arqit Quantum and AEye
The main advantage of trading using opposite Arqit Quantum and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arqit Quantum 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.| Arqit Quantum vs. Arqit Quantum | Arqit Quantum vs. IONQ WT | Arqit Quantum vs. Rigetti Computing Warrants |
| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |