Correlation Between Compagnie Generale and Aeye
Can any of the company-specific risk be diversified away by investing in both Compagnie Generale and Aeye 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 Compagnie Generale and Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Generale des and Aeye Inc, you can compare the effects of market volatilities on Compagnie Generale and Aeye 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 Compagnie Generale with a short position of Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Generale and Aeye.
Diversification Opportunities for Compagnie Generale and Aeye
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Compagnie and Aeye is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Generale des and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc and Compagnie Generale 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 Compagnie Generale des are associated (or correlated) with Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of Compagnie Generale i.e., Compagnie Generale and Aeye go up and down completely randomly.
Pair Corralation between Compagnie Generale and Aeye
Assuming the 90 days horizon Compagnie Generale des is expected to under-perform the Aeye. But the pink sheet apears to be less risky and, when comparing its historical volatility, Compagnie Generale des is 4.73 times less risky than Aeye. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Aeye Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 108.00 in Aeye Inc on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Aeye Inc or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Generale des vs. Aeye Inc
Performance |
| Timeline |
| Compagnie Generale des |
| Aeye Inc |
Compagnie Generale and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Generale and Aeye
The main advantage of trading using opposite Compagnie Generale and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Generale position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.| Compagnie Generale vs. Continental Aktiengesellschaft | Compagnie Generale vs. Bridgestone Corp ADR | Compagnie Generale vs. Goodyear Tire Rubber | Compagnie Generale vs. Brembo SpA |
| Aeye vs. Innoviz Technologies | Aeye vs. Hesai Group American | Aeye vs. Luminar Technologies | Aeye vs. Mobileye Global Class |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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