Correlation Between Foresight Autonomous and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both Foresight Autonomous and Aeva Technologies 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 Foresight Autonomous and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foresight Autonomous Holdings and Aeva Technologies, you can compare the effects of market volatilities on Foresight Autonomous and Aeva Technologies 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 Foresight Autonomous with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and Aeva Technologies.
Diversification Opportunities for Foresight Autonomous and Aeva Technologies
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foresight and Aeva is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and Foresight Autonomous 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 Foresight Autonomous Holdings are associated (or correlated) with Aeva Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeva Technologies has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and Aeva Technologies go up and down completely randomly.
Pair Corralation between Foresight Autonomous and Aeva Technologies
Given the investment horizon of 90 days Foresight Autonomous Holdings is expected to under-perform the Aeva Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Foresight Autonomous Holdings is 1.26 times less risky than Aeva Technologies. The stock trades about -0.06 of its potential returns per unit of risk. The Aeva Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Aeva Technologies on August 28, 2024 and sell it today you would lose (125.00) from holding Aeva Technologies or give up 21.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Foresight Autonomous Holdings vs. Aeva Technologies
Performance |
| Timeline |
| Foresight Autonomous |
| Aeva Technologies |
Foresight Autonomous and Aeva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foresight Autonomous and Aeva Technologies
The main advantage of trading using opposite Foresight Autonomous and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foresight Autonomous position performs unexpectedly, Aeva Technologies 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 Aeva Technologies will offset losses from the drop in Aeva Technologies' long position.| Foresight Autonomous vs. Aeva Technologies | Foresight Autonomous vs. Luminar Technologies | Foresight Autonomous vs. Hesai Group American | Foresight Autonomous vs. Aeye Inc |
| Aeva Technologies vs. Faraday Future Intelligent | Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Aeye Inc | Aeva Technologies 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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