Correlation Between SES AI and Aeye
Can any of the company-specific risk be diversified away by investing in both SES AI 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 SES AI and Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SES AI Corp and Aeye Inc, you can compare the effects of market volatilities on SES AI 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 SES AI with a short position of Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of SES AI and Aeye.
Diversification Opportunities for SES AI and Aeye
Weak diversification
The 3 months correlation between SES and Aeye is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SES AI Corp and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc and SES AI 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 SES AI Corp 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 SES AI i.e., SES AI and Aeye go up and down completely randomly.
Pair Corralation between SES AI and Aeye
Considering the 90-day investment horizon SES AI Corp is expected to under-perform the Aeye. In addition to that, SES AI is 1.45 times more volatile than Aeye Inc. It trades about -0.09 of its total potential returns per unit of risk. Aeye Inc is currently generating about 0.0 per unit of volatility. If you would invest 106.00 in Aeye Inc on September 5, 2024 and sell it today you would lose (3.00) from holding Aeye Inc or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SES AI Corp vs. Aeye Inc
Performance |
| Timeline |
| SES AI Corp |
| Aeye Inc |
SES AI and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SES AI and Aeye
The main advantage of trading using opposite SES AI and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SES AI 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.| SES AI vs. Cooper Stnd | SES AI vs. Motorcar Parts of | SES AI vs. American Axle Manufacturing | SES AI vs. Stoneridge |
| Aeye vs. Innoviz Technologies | Aeye vs. Xos Equity Warrants | Aeye vs. Aquagold International | Aeye vs. Morningstar Unconstrained Allocation |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |