Correlation Between AST SpaceMobile and AEye
Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile 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 AST SpaceMobile and AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and AEye Inc, you can compare the effects of market volatilities on AST SpaceMobile 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 AST SpaceMobile with a short position of AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and AEye.
Diversification Opportunities for AST SpaceMobile and AEye
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AST and AEye is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc and AST SpaceMobile 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 AST SpaceMobile 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 AST SpaceMobile i.e., AST SpaceMobile and AEye go up and down completely randomly.
Pair Corralation between AST SpaceMobile and AEye
If you would invest 8.20 in AEye Inc on November 3, 2024 and sell it today you would lose (0.50) from holding AEye Inc or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
AST SpaceMobile vs. AEye Inc
Performance |
| Timeline |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AEye Inc |
AST SpaceMobile and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AST SpaceMobile and AEye
The main advantage of trading using opposite AST SpaceMobile and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile 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.| AST SpaceMobile vs. Origin Materials Warrant | AST SpaceMobile vs. Ast Spacemobile | AST SpaceMobile vs. Paysafe Ltd Wt | AST SpaceMobile vs. EVgo Equity 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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