Correlation Between Berkshire Grey and AEye
Can any of the company-specific risk be diversified away by investing in both Berkshire Grey 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 Berkshire Grey and AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkshire Grey and AEye Inc, you can compare the effects of market volatilities on Berkshire Grey 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 Berkshire Grey with a short position of AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Grey and AEye.
Diversification Opportunities for Berkshire Grey and AEye
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Berkshire and AEye is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Grey and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc and Berkshire Grey 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 Berkshire Grey 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 Berkshire Grey i.e., Berkshire Grey and AEye go up and down completely randomly.
Pair Corralation between Berkshire Grey 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 | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Berkshire Grey vs. AEye Inc
Performance |
| Timeline |
| Berkshire Grey |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AEye Inc |
Berkshire Grey and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Grey and AEye
The main advantage of trading using opposite Berkshire Grey and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Grey 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.| Berkshire Grey vs. Nuburu Inc | Berkshire Grey vs. Laser Photonics | Berkshire Grey vs. JE Cleantech Holdings | Berkshire Grey vs. Reelcause |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |