Correlation Between Aeva Technologies, and BFLY WT

Can any of the company-specific risk be diversified away by investing in both Aeva Technologies, and BFLY WT 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 Aeva Technologies, and BFLY WT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aeva Technologies, WT and BFLY WT, you can compare the effects of market volatilities on Aeva Technologies, and BFLY WT 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 Aeva Technologies, with a short position of BFLY WT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies, and BFLY WT.

Diversification Opportunities for Aeva Technologies, and BFLY WT

0.0

Correlation Coefficient

Aeva Technologies,  BFLY WT

Pay attention - limited upside

The 3 months correlation between Aeva and BFLY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies, WT and BFLY WT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BFLY WT and Aeva Technologies, 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 Aeva Technologies, WT are associated (or correlated) with BFLY WT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BFLY WT has no effect on the direction of Aeva Technologies, i.e., Aeva Technologies, and BFLY WT go up and down completely randomly.

Pair Corralation between Aeva Technologies, and BFLY WT

If you would invest  4.90  in Aeva Technologies, WT on October 9, 2024 and sell it today you would earn a total of  3.10  from holding Aeva Technologies, WT or generate 63.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aeva Technologies, WT  vs.  BFLY WT

Aeva Technologies,

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aeva Technologies, WT are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Aeva Technologies, unveiled solid returns over the last few months and may actually be approaching a breakup point.

BFLY WT

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days BFLY WT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BFLY WT is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Aeva Technologies, and BFLY WT

The main advantage of trading using opposite Aeva Technologies, and BFLY WT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeva Technologies, position performs unexpectedly, BFLY WT 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 BFLY WT will offset losses from the drop in BFLY WT's long position.

The idea behind Aeva Technologies, WT and BFLY WT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.