Correlation Between Luminar Technologies and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both Luminar Technologies 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 Luminar Technologies and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luminar Technologies and Aeva Technologies, you can compare the effects of market volatilities on Luminar Technologies 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 Luminar Technologies with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luminar Technologies and Aeva Technologies.
Diversification Opportunities for Luminar Technologies and Aeva Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luminar and Aeva is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Luminar Technologies and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and Luminar Technologies 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 Luminar Technologies 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 Luminar Technologies i.e., Luminar Technologies and Aeva Technologies go up and down completely randomly.
Pair Corralation between Luminar Technologies and Aeva Technologies
Given the investment horizon of 90 days Luminar Technologies is expected to under-perform the Aeva Technologies. In addition to that, Luminar Technologies is 1.67 times more volatile than Aeva Technologies. It trades about -0.1 of its total potential returns per unit of risk. Aeva Technologies is currently generating about 0.09 per unit of volatility. If you would invest 315.00 in Aeva Technologies on November 1, 2024 and sell it today you would earn a total of 96.00 from holding Aeva Technologies or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luminar Technologies vs. Aeva Technologies
Performance |
| Timeline |
| Luminar Technologies |
| Aeva Technologies |
Luminar Technologies and Aeva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luminar Technologies and Aeva Technologies
The main advantage of trading using opposite Luminar Technologies and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luminar Technologies 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.| Luminar Technologies vs. Mobileye Global Class | Luminar Technologies vs. Hyliion Holdings Corp | Luminar Technologies vs. Aeva Technologies | Luminar Technologies vs. Innoviz Technologies |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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