Correlation Between Aeye and BTB Real
Can any of the company-specific risk be diversified away by investing in both Aeye and BTB Real 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 BTB Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and BTB Real Estate, you can compare the effects of market volatilities on Aeye and BTB Real 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 BTB Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and BTB Real.
Diversification Opportunities for Aeye and BTB Real
Average diversification
The 3 months correlation between Aeye and BTB is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and BTB Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTB Real Estate 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 BTB Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTB Real Estate has no effect on the direction of Aeye i.e., Aeye and BTB Real go up and down completely randomly.
Pair Corralation between Aeye and BTB Real
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the BTB Real. In addition to that, Aeye is 6.09 times more volatile than BTB Real Estate. It trades about 0.0 of its total potential returns per unit of risk. BTB Real Estate is currently generating about 0.08 per unit of volatility. If you would invest 192.00 in BTB Real Estate on September 3, 2024 and sell it today you would earn a total of 60.00 from holding BTB Real Estate or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.78% |
| Values | Daily Returns |
Aeye Inc vs. BTB Real Estate
Performance |
| Timeline |
| Aeye Inc |
| BTB Real Estate |
Aeye and BTB Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and BTB Real
The main advantage of trading using opposite Aeye and BTB Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, BTB Real 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 BTB Real will offset losses from the drop in BTB Real's long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| BTB Real vs. City Office | BTB Real vs. Vornado Realty Trust | BTB Real vs. Cousins Properties Incorporated | BTB Real vs. Highwoods Properties |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |