Correlation Between Aeye and NSTAR Electric
Can any of the company-specific risk be diversified away by investing in both Aeye and NSTAR Electric 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 NSTAR Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeye Inc and NSTAR Electric, you can compare the effects of market volatilities on Aeye and NSTAR Electric 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 NSTAR Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and NSTAR Electric.
Diversification Opportunities for Aeye and NSTAR Electric
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aeye and NSTAR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and NSTAR Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR Electric 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 NSTAR Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR Electric has no effect on the direction of Aeye i.e., Aeye and NSTAR Electric go up and down completely randomly.
Pair Corralation between Aeye and NSTAR Electric
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the NSTAR Electric. In addition to that, Aeye is 2.77 times more volatile than NSTAR Electric. It trades about -0.01 of its total potential returns per unit of risk. NSTAR Electric is currently generating about 0.01 per unit of volatility. If you would invest 9,200 in NSTAR Electric on September 14, 2024 and sell it today you would lose (800.00) from holding NSTAR Electric or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.86% |
| Values | Daily Returns |
Aeye Inc vs. NSTAR Electric
Performance |
| Timeline |
| Aeye Inc |
| NSTAR Electric |
Aeye and NSTAR Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and NSTAR Electric
The main advantage of trading using opposite Aeye and NSTAR Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, NSTAR Electric 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 NSTAR Electric will offset losses from the drop in NSTAR Electric's long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| NSTAR Electric vs. Willamette Valley Vineyards | NSTAR Electric vs. Aeye Inc | NSTAR Electric vs. SNDL Inc | NSTAR Electric vs. Anheuser Busch Inbev |
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 Positions Ratings module to 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.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |