Correlation Between Aeva Technologies, and Marketing Worldwide

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

Diversification Opportunities for Aeva Technologies, and Marketing Worldwide

0.1

Correlation Coefficient

Aeva Technologies,  Marketing Worldwide

Average diversification

The 3 months correlation between Aeva and Marketing is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies, Common and Marketing Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketing Worldwide 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 Marketing Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketing Worldwide has no effect on the direction of Aeva Technologies, i.e., Aeva Technologies, and Marketing Worldwide go up and down completely randomly.

Pair Corralation between Aeva Technologies, and Marketing Worldwide

Given the investment horizon of 90 days Aeva Technologies, is expected to generate 62.26 times less return on investment than Marketing Worldwide. But when comparing it to its historical volatility, Aeva Technologies, Common is 6.67 times less risky than Marketing Worldwide. It trades about 0.02 of its potential returns per unit of risk. Marketing Worldwide is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Marketing Worldwide on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Marketing Worldwide or generate 0.0% return on investment over 90 days.

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

Aeva Technologies, Common  vs.  Marketing Worldwide

Aeva Technologies, Common

Risk-Adjusted Performance

Insignificant

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.

Marketing Worldwide

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marketing Worldwide are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Marketing Worldwide exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aeva Technologies, and Marketing Worldwide

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

The idea behind Aeva Technologies, Common and Marketing Worldwide 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.