Correlation Between AEye and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both AEye and Golden Matrix 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 Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEye Inc and Golden Matrix Group, you can compare the effects of market volatilities on AEye and Golden Matrix 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 Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEye and Golden Matrix.
Diversification Opportunities for AEye and Golden Matrix
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AEye and Golden is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AEye Inc and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of AEye i.e., AEye and Golden Matrix go up and down completely randomly.
Pair Corralation between AEye and Golden Matrix
Assuming the 90 days horizon AEye Inc is expected to generate 3.28 times more return on investment than Golden Matrix. However, AEye is 3.28 times more volatile than Golden Matrix Group. It trades about 0.08 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.04 per unit of risk. If you would invest 1.20 in AEye Inc on August 29, 2024 and sell it today you would lose (0.08) from holding AEye Inc or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEye Inc vs. Golden Matrix Group
Performance |
| Timeline |
| AEye Inc |
| Golden Matrix Group |
AEye and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEye and Golden Matrix
The main advantage of trading using opposite AEye and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEye position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
| Golden Matrix vs. Playstudios | Golden Matrix vs. Talkspace | Golden Matrix vs. Katapult Holdings Equity | Golden Matrix vs. HUMANA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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