Correlation Between Aeye and Foresight Autonomous
Can any of the company-specific risk be diversified away by investing in both Aeye and Foresight Autonomous 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 Foresight Autonomous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and Foresight Autonomous Holdings, you can compare the effects of market volatilities on Aeye and Foresight Autonomous 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 Foresight Autonomous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and Foresight Autonomous.
Diversification Opportunities for Aeye and Foresight Autonomous
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aeye and Foresight is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and Foresight Autonomous Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Autonomous 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 Foresight Autonomous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Autonomous has no effect on the direction of Aeye i.e., Aeye and Foresight Autonomous go up and down completely randomly.
Pair Corralation between Aeye and Foresight Autonomous
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the Foresight Autonomous. In addition to that, Aeye is 1.41 times more volatile than Foresight Autonomous Holdings. It trades about -0.06 of its total potential returns per unit of risk. Foresight Autonomous Holdings is currently generating about -0.04 per unit of volatility. If you would invest 68.00 in Foresight Autonomous Holdings on August 28, 2024 and sell it today you would lose (3.00) from holding Foresight Autonomous Holdings or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeye Inc vs. Foresight Autonomous Holdings
Performance |
| Timeline |
| Aeye Inc |
| Foresight Autonomous |
Aeye and Foresight Autonomous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and Foresight Autonomous
The main advantage of trading using opposite Aeye and Foresight Autonomous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, Foresight Autonomous 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 Foresight Autonomous will offset losses from the drop in Foresight Autonomous' long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| Foresight Autonomous vs. Aeva Technologies | Foresight Autonomous vs. Luminar Technologies | Foresight Autonomous vs. Hesai Group American | Foresight Autonomous 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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