Correlation Between NYSE Composite and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Aeva 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 NYSE Composite and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Aeva Technologies, you can compare the effects of market volatilities on NYSE Composite and Aeva 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 NYSE Composite with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Aeva Technologies.
Diversification Opportunities for NYSE Composite and Aeva Technologies
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Aeva is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and NYSE Composite 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 NYSE Composite are associated (or correlated) with Aeva Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeva Technologies has no effect on the direction of NYSE Composite i.e., NYSE Composite and Aeva Technologies go up and down completely randomly.
Pair Corralation between NYSE Composite and Aeva Technologies
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.73 times less return on investment than Aeva Technologies. But when comparing it to its historical volatility, NYSE Composite is 6.1 times less risky than Aeva Technologies. It trades about 0.11 of its potential returns per unit of risk. Aeva Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Aeva Technologies on November 1, 2024 and sell it today you would earn a total of 11.00 from holding Aeva Technologies or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Aeva Technologies
Performance |
| Timeline |
NYSE Composite and Aeva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Aeva Technologies
Pair trading matchups for Aeva Technologies
Pair Trading with NYSE Composite and Aeva Technologies
The main advantage of trading using opposite NYSE Composite and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Aeva 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 Aeva Technologies will offset losses from the drop in Aeva Technologies' long position.| NYSE Composite vs. Western Copper and | NYSE Composite vs. Chemours Co | NYSE Composite vs. IPG Photonics | NYSE Composite vs. Morgan Advanced Materials |
| Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Hesai Group American | Aeva Technologies vs. Luminar Technologies | Aeva Technologies vs. Aeye 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |