Correlation Between Indie Semiconductor and AEye
Can any of the company-specific risk be diversified away by investing in both Indie Semiconductor 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 Indie Semiconductor and AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indie Semiconductor Warrant and AEye Inc, you can compare the effects of market volatilities on Indie Semiconductor 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 Indie Semiconductor with a short position of AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indie Semiconductor and AEye.
Diversification Opportunities for Indie Semiconductor and AEye
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Indie and AEye is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Indie Semiconductor Warrant and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc and Indie Semiconductor 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 Indie Semiconductor Warrant 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 Indie Semiconductor i.e., Indie Semiconductor and AEye go up and down completely randomly.
Pair Corralation between Indie Semiconductor 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 | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Indie Semiconductor Warrant vs. AEye Inc
Performance |
| Timeline |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AEye Inc |
Indie Semiconductor and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indie Semiconductor and AEye
The main advantage of trading using opposite Indie Semiconductor and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indie Semiconductor 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.| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast Holdings |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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