Correlation Between AEye and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both AEye and Stryve Foods 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 Stryve Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEye Inc and Stryve Foods, you can compare the effects of market volatilities on AEye and Stryve Foods 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 Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEye and Stryve Foods.
Diversification Opportunities for AEye and Stryve Foods
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEye and Stryve is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AEye Inc and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods 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 Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of AEye i.e., AEye and Stryve Foods go up and down completely randomly.
Pair Corralation between AEye and Stryve Foods
Assuming the 90 days horizon AEye is expected to generate 2.38 times less return on investment than Stryve Foods. But when comparing it to its historical volatility, AEye Inc is 1.92 times less risky than Stryve Foods. It trades about 0.1 of its potential returns per unit of risk. Stryve Foods is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.67 in Stryve Foods on August 31, 2024 and sell it today you would lose (0.22) from holding Stryve Foods or give up 32.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
AEye Inc vs. Stryve Foods
Performance |
| Timeline |
| AEye Inc |
| Stryve Foods |
AEye and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEye and Stryve Foods
The main advantage of trading using opposite AEye and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEye position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
| Stryve Foods vs. Stryve Foods | Stryve Foods vs. Talkspace | Stryve Foods vs. AEye Inc | Stryve Foods vs. Microvast Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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