Correlation Between Aeva Technologies, and Compagnie Gnrale

Can any of the company-specific risk be diversified away by investing in both Aeva Technologies, and Compagnie Gnrale 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 Compagnie Gnrale 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 Compagnie Gnrale des, you can compare the effects of market volatilities on Aeva Technologies, and Compagnie Gnrale 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 Compagnie Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies, and Compagnie Gnrale.

Diversification Opportunities for Aeva Technologies, and Compagnie Gnrale

-0.6

Correlation Coefficient

Aeva Technologies,  Compagnie Gnrale

Excellent diversification

The 3 months correlation between Aeva and Compagnie is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies, Common and Compagnie Gnrale des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Gnrale des 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 Compagnie Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Gnrale des has no effect on the direction of Aeva Technologies, i.e., Aeva Technologies, and Compagnie Gnrale go up and down completely randomly.

Pair Corralation between Aeva Technologies, and Compagnie Gnrale

Given the investment horizon of 90 days Aeva Technologies, is expected to generate 1.88 times less return on investment than Compagnie Gnrale. In addition to that, Aeva Technologies, is 1.79 times more volatile than Compagnie Gnrale des. It trades about 0.02 of its total potential returns per unit of risk. Compagnie Gnrale des is currently generating about 0.06 per unit of volatility. If you would invest  3,201  in Compagnie Gnrale des on December 21, 2024 and sell it today you would earn a total of  329.00  from holding Compagnie Gnrale des or generate 10.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aeva Technologies, Common  vs.  Compagnie Gnrale des

Aeva Technologies, Common

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aeva Technologies, Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aeva Technologies, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Compagnie Gnrale des

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie Gnrale des are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Compagnie Gnrale reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aeva Technologies, and Compagnie Gnrale

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

The idea behind Aeva Technologies, Common and Compagnie Gnrale des 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..