Correlation Between Gogoro Equity and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both Gogoro Equity 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 Gogoro Equity and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gogoro Equity Warrant and Aeva Technologies, you can compare the effects of market volatilities on Gogoro Equity 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 Gogoro Equity with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gogoro Equity and Aeva Technologies.
Diversification Opportunities for Gogoro Equity and Aeva Technologies
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gogoro and Aeva is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gogoro Equity Warrant and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and Gogoro Equity 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 Gogoro Equity Warrant 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 Gogoro Equity i.e., Gogoro Equity and Aeva Technologies go up and down completely randomly.
Pair Corralation between Gogoro Equity and Aeva Technologies
Assuming the 90 days horizon Gogoro Equity Warrant is expected to generate 3.88 times more return on investment than Aeva Technologies. However, Gogoro Equity is 3.88 times more volatile than Aeva Technologies. It trades about 0.06 of its potential returns per unit of risk. Aeva Technologies is currently generating about 0.1 per unit of risk. If you would invest 5.15 in Gogoro Equity Warrant on November 2, 2024 and sell it today you would lose (2.15) from holding Gogoro Equity Warrant or give up 41.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Gogoro Equity Warrant vs. Aeva Technologies
Performance |
| Timeline |
| Gogoro Equity Warrant |
| Aeva Technologies |
Gogoro Equity and Aeva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gogoro Equity and Aeva Technologies
The main advantage of trading using opposite Gogoro Equity and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gogoro Equity 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.| Gogoro Equity vs. Stryve Foods | Gogoro Equity vs. TC BioPharm Holdings | Gogoro Equity vs. Voxtur Analytics Corp |
| Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Hesai Group American | Aeva Technologies vs. Luminar Technologies | Aeva Technologies vs. Aeye Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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