Correlation Between Aeye and Innoviz Technologies
Can any of the company-specific risk be diversified away by investing in both Aeye and Innoviz 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 Innoviz 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 Innoviz Technologies, you can compare the effects of market volatilities on Aeye and Innoviz 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 Innoviz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and Innoviz Technologies.
Diversification Opportunities for Aeye and Innoviz Technologies
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aeye and Innoviz is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and Innoviz Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innoviz 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 Innoviz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innoviz Technologies has no effect on the direction of Aeye i.e., Aeye and Innoviz Technologies go up and down completely randomly.
Pair Corralation between Aeye and Innoviz Technologies
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the Innoviz Technologies. In addition to that, Aeye is 1.08 times more volatile than Innoviz Technologies. It trades about -0.2 of its total potential returns per unit of risk. Innoviz Technologies is currently generating about -0.11 per unit of volatility. If you would invest 115.00 in Innoviz Technologies on August 23, 2024 and sell it today you would lose (63.00) from holding Innoviz Technologies or give up 54.78% 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. Innoviz Technologies
Performance |
| Timeline |
| Aeye Inc |
| Innoviz Technologies |
Aeye and Innoviz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and Innoviz Technologies
The main advantage of trading using opposite Aeye and Innoviz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, Innoviz 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 Innoviz Technologies will offset losses from the drop in Innoviz Technologies' long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| Innoviz Technologies vs. Gentex | Innoviz Technologies vs. Adient PLC | Innoviz Technologies vs. Autoliv | Innoviz Technologies vs. Fox Factory Holding |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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