Correlation Between Aeye and 548661EH6
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By analyzing existing cross correlation between Aeye Inc and LOW 375 01 APR 32, you can compare the effects of market volatilities on Aeye and 548661EH6 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 548661EH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeye and 548661EH6.
Diversification Opportunities for Aeye and 548661EH6
Good diversification
The 3 months correlation between Aeye and 548661EH6 is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc and LOW 375 01 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOW 375 01 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 548661EH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOW 375 01 has no effect on the direction of Aeye i.e., Aeye and 548661EH6 go up and down completely randomly.
Pair Corralation between Aeye and 548661EH6
Given the investment horizon of 90 days Aeye Inc is expected to under-perform the 548661EH6. In addition to that, Aeye is 22.38 times more volatile than LOW 375 01 APR 32. It trades about -0.01 of its total potential returns per unit of risk. LOW 375 01 APR 32 is currently generating about 0.02 per unit of volatility. If you would invest 8,835 in LOW 375 01 APR 32 on September 14, 2024 and sell it today you would earn a total of 254.00 from holding LOW 375 01 APR 32 or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.88% |
| Values | Daily Returns |
Aeye Inc vs. LOW 375 01 APR 32
Performance |
| Timeline |
| Aeye Inc |
| LOW 375 01 |
Aeye and 548661EH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeye and 548661EH6
The main advantage of trading using opposite Aeye and 548661EH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye position performs unexpectedly, 548661EH6 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 548661EH6 will offset losses from the drop in 548661EH6's long position.| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
| 548661EH6 vs. U Power Limited | 548661EH6 vs. Aeye Inc | 548661EH6 vs. American Axle Manufacturing | 548661EH6 vs. Tesla 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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