Correlation Between Stryve Foods and AEye
Can any of the company-specific risk be diversified away by investing in both Stryve Foods 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 Stryve Foods and AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryve Foods and AEye Inc, you can compare the effects of market volatilities on Stryve Foods 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 Stryve Foods with a short position of AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and AEye.
Diversification Opportunities for Stryve Foods and AEye
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stryve and AEye is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc and Stryve Foods 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 Stryve Foods 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 Stryve Foods i.e., Stryve Foods and AEye go up and down completely randomly.
Pair Corralation between Stryve Foods and AEye
Given the investment horizon of 90 days Stryve Foods is expected to under-perform the AEye. But the stock apears to be less risky and, when comparing its historical volatility, Stryve Foods is 2.86 times less risky than AEye. The stock trades about -0.05 of its potential returns per unit of risk. The AEye Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.20 in AEye Inc on August 30, 2024 and sell it today you would lose (1.08) from holding AEye Inc or give up 49.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stryve Foods vs. AEye Inc
Performance |
| Timeline |
| Stryve Foods |
| AEye Inc |
Stryve Foods and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stryve Foods and AEye
The main advantage of trading using opposite Stryve Foods and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods 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.| Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |