Correlation Between 4 Less and Aeye
Can any of the company-specific risk be diversified away by investing in both 4 Less and Aeye 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 4 Less and Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4 Less Group and Aeye Inc, you can compare the effects of market volatilities on 4 Less and Aeye 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 4 Less with a short position of Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4 Less and Aeye.
Diversification Opportunities for 4 Less and Aeye
Modest diversification
The 3 months correlation between FLES and Aeye is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding 4 Less Group and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc and 4 Less 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 4 Less Group are associated (or correlated) with Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of 4 Less i.e., 4 Less and Aeye go up and down completely randomly.
Pair Corralation between 4 Less and Aeye
Given the investment horizon of 90 days 4 Less Group is expected to generate 3.88 times more return on investment than Aeye. However, 4 Less is 3.88 times more volatile than Aeye Inc. It trades about 0.1 of its potential returns per unit of risk. Aeye Inc is currently generating about 0.0 per unit of risk. If you would invest 0.01 in 4 Less Group on December 18, 2024 and sell it today you would earn a total of 0.00 from holding 4 Less Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.16% |
Values | Daily Returns |
4 Less Group vs. Aeye Inc
Performance |
Timeline |
4 Less Group |
Aeye Inc |
4 Less and Aeye Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 4 Less and Aeye
The main advantage of trading using opposite 4 Less and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4 Less position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.4 Less vs. Triad Pro Innovators | 4 Less vs. ABCO Energy | 4 Less vs. Holiday Island Holdings | 4 Less vs. RCABS Inc |
Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Fundamental Analysis View fundamental data based on most recent published financial statements |