Correlation Between AEye and Berkshire Grey
Can any of the company-specific risk be diversified away by investing in both AEye and Berkshire Grey 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 Berkshire Grey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEye Inc and Berkshire Grey, you can compare the effects of market volatilities on AEye and Berkshire Grey 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 Berkshire Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEye and Berkshire Grey.
Diversification Opportunities for AEye and Berkshire Grey
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AEye and Berkshire is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AEye Inc and Berkshire Grey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Grey 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 Berkshire Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Grey has no effect on the direction of AEye i.e., AEye and Berkshire Grey go up and down completely randomly.
Pair Corralation between AEye and Berkshire Grey
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 | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
AEye Inc vs. Berkshire Grey
Performance |
| Timeline |
| AEye Inc |
| Berkshire Grey |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AEye and Berkshire Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEye and Berkshire Grey
The main advantage of trading using opposite AEye and Berkshire Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEye position performs unexpectedly, Berkshire Grey 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 Berkshire Grey will offset losses from the drop in Berkshire Grey's long position.| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
| Berkshire Grey vs. Nuburu Inc | Berkshire Grey vs. Laser Photonics | Berkshire Grey vs. JE Cleantech Holdings | Berkshire Grey vs. Reelcause |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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