Correlation Between Sypris Solutions and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both Sypris Solutions 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 Sypris Solutions and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sypris Solutions and Aeva Technologies, you can compare the effects of market volatilities on Sypris Solutions 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 Sypris Solutions with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sypris Solutions and Aeva Technologies.
Diversification Opportunities for Sypris Solutions and Aeva Technologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sypris and Aeva is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sypris Solutions and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and Sypris Solutions 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 Sypris Solutions 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 Sypris Solutions i.e., Sypris Solutions and Aeva Technologies go up and down completely randomly.
Pair Corralation between Sypris Solutions and Aeva Technologies
Given the investment horizon of 90 days Sypris Solutions is expected to under-perform the Aeva Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Sypris Solutions is 3.03 times less risky than Aeva Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Aeva Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 448.00 in Aeva Technologies on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Aeva Technologies or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sypris Solutions vs. Aeva Technologies
Performance |
| Timeline |
| Sypris Solutions |
| Aeva Technologies |
Sypris Solutions and Aeva Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sypris Solutions and Aeva Technologies
The main advantage of trading using opposite Sypris Solutions and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sypris Solutions 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.| Sypris Solutions vs. Monro Muffler Brake | Sypris Solutions vs. Magna International | Sypris Solutions vs. BorgWarner | Sypris Solutions vs. Mobileye Global Class |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |