Correlation Between Aeye and Evofem Biosciences
Can any of the company-specific risk be diversified away by investing in both Aeye and Evofem Biosciences 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 Evofem Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and Evofem Biosciences, you can compare the effects of market volatilities on Aeye and Evofem Biosciences 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 Evofem Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and Evofem Biosciences.
Diversification Opportunities for Aeye and Evofem Biosciences
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aeye and Evofem is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and Evofem Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evofem Biosciences 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 Evofem Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evofem Biosciences has no effect on the direction of Aeye i.e., Aeye and Evofem Biosciences go up and down completely randomly.
Pair Corralation between Aeye and Evofem Biosciences
If you would invest 107.00 in Aeye Inc on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Aeye Inc or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aeye Inc vs. Evofem Biosciences
Performance |
| Timeline |
| Aeye Inc |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aeye and Evofem Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and Evofem Biosciences
The main advantage of trading using opposite Aeye and Evofem Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, Evofem Biosciences 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 Evofem Biosciences will offset losses from the drop in Evofem Biosciences' long position.| Aeye vs. Innoviz Technologies | Aeye vs. Hesai Group American | Aeye vs. Luminar Technologies | Aeye vs. Mobileye Global Class |
| Evofem Biosciences vs. Gentex | Evofem Biosciences vs. Magna International | Evofem Biosciences vs. PACCAR Inc | Evofem Biosciences 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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