Correlation Between Golden Matrix and AEye
Can any of the company-specific risk be diversified away by investing in both Golden Matrix 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 Golden Matrix and AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Matrix Group and AEye Inc, you can compare the effects of market volatilities on Golden Matrix 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 Golden Matrix with a short position of AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and AEye.
Diversification Opportunities for Golden Matrix and AEye
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Golden and AEye is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc and Golden Matrix 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 Golden Matrix Group 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 Golden Matrix i.e., Golden Matrix and AEye go up and down completely randomly.
Pair Corralation between Golden Matrix and AEye
Given the investment horizon of 90 days Golden Matrix is expected to generate 13.48 times less return on investment than AEye. But when comparing it to its historical volatility, Golden Matrix Group is 3.24 times less risky than AEye. It trades about 0.03 of its potential returns per unit of risk. AEye Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.00 in AEye Inc on August 30, 2024 and sell it today you would earn a total of 0.12 from holding AEye Inc or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Matrix Group vs. AEye Inc
Performance |
| Timeline |
| Golden Matrix Group |
| AEye Inc |
Golden Matrix and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and AEye
The main advantage of trading using opposite Golden Matrix and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix 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.| Golden Matrix vs. SohuCom | Golden Matrix vs. Snail, Class A | Golden Matrix vs. Doubledown Interactive Co | Golden Matrix vs. i3 Interactive |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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