Correlation Between AEye and Otonomo Technologies
Can any of the company-specific risk be diversified away by investing in both AEye and Otonomo Technologies 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 Otonomo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEye Inc and Otonomo Technologies, you can compare the effects of market volatilities on AEye and Otonomo Technologies 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 Otonomo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEye and Otonomo Technologies.
Diversification Opportunities for AEye and Otonomo Technologies
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AEye and Otonomo is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AEye Inc and Otonomo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otonomo Technologies 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 Otonomo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otonomo Technologies has no effect on the direction of AEye i.e., AEye and Otonomo Technologies go up and down completely randomly.
Pair Corralation between AEye and Otonomo Technologies
If you would invest 1.00 in AEye Inc on August 30, 2024 and sell it today you would earn a total of 0.12 from holding AEye Inc or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
AEye Inc vs. Otonomo Technologies
Performance |
| Timeline |
| AEye Inc |
| Otonomo Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AEye and Otonomo Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEye and Otonomo Technologies
The main advantage of trading using opposite AEye and Otonomo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEye position performs unexpectedly, Otonomo Technologies 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 Otonomo Technologies will offset losses from the drop in Otonomo Technologies' long position.| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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