Correlation Between AEye and AST SpaceMobile
Can any of the company-specific risk be diversified away by investing in both AEye and AST SpaceMobile 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 AST SpaceMobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEye Inc and AST SpaceMobile, you can compare the effects of market volatilities on AEye and AST SpaceMobile 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 AST SpaceMobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEye and AST SpaceMobile.
Diversification Opportunities for AEye and AST SpaceMobile
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AEye and AST is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding AEye Inc and AST SpaceMobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AST SpaceMobile 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 AST SpaceMobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AST SpaceMobile has no effect on the direction of AEye i.e., AEye and AST SpaceMobile go up and down completely randomly.
Pair Corralation between AEye and AST SpaceMobile
If you would invest 8.20 in AEye Inc on November 3, 2024 and sell it today you would lose (0.50) from holding AEye Inc or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
AEye Inc vs. AST SpaceMobile
Performance |
| Timeline |
| AEye Inc |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AEye and AST SpaceMobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEye and AST SpaceMobile
The main advantage of trading using opposite AEye and AST SpaceMobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEye position performs unexpectedly, AST SpaceMobile 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 AST SpaceMobile will offset losses from the drop in AST SpaceMobile's long position.| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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