Correlation Between Aeva Technologies, and China Coal

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

By analyzing existing cross correlation between Aeva Technologies, Common and China Coal Energy, you can compare the effects of market volatilities on Aeva Technologies, and China Coal 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 China Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies, and China Coal.

Diversification Opportunities for Aeva Technologies, and China Coal

0.0

Correlation Coefficient

Aeva Technologies,  China Coal

Pay attention - limited upside

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

Pair Corralation between Aeva Technologies, and China Coal

If you would invest  475.00  in Aeva Technologies, Common on December 28, 2024 and sell it today you would earn a total of  163.00  from holding Aeva Technologies, Common or generate 34.32% return on investment over 90 days.

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

Aeva Technologies, Common  vs.  China Coal Energy

Aeva Technologies, Common

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aeva Technologies, Common are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aeva Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

China Coal Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days China Coal Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Coal is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Aeva Technologies, and China Coal

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

The idea behind Aeva Technologies, Common and China Coal Energy 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.