Correlation Between Aeye and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both Aeye 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 Aeye and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and Aeva Technologies, you can compare the effects of market volatilities on Aeye 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 Aeye with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and Aeva Technologies.
Diversification Opportunities for Aeye and Aeva Technologies
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aeye and Aeva is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and Aeye 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 Aeye Inc 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 Aeye i.e., Aeye and Aeva Technologies go up and down completely randomly.
Pair Corralation between Aeye and Aeva Technologies
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the Aeva Technologies. In addition to that, Aeye is 1.68 times more volatile than Aeva Technologies. It trades about -0.03 of its total potential returns per unit of risk. Aeva Technologies is currently generating about 0.01 per unit of volatility. If you would invest 795.00 in Aeva Technologies on August 27, 2024 and sell it today you would lose (370.00) from holding Aeva Technologies or give up 46.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeye Inc vs. Aeva Technologies
Performance |
| Timeline |
| Aeye Inc |
| Aeva Technologies |
Aeye and Aeva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and Aeva Technologies
The main advantage of trading using opposite Aeye and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye 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.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |