Correlation Between Gentex and Aeva Technologies,

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

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

Diversification Opportunities for Gentex and Aeva Technologies,

0.42

Correlation Coefficient

Gentex  Aeva Technologies,

Very weak diversification

The 3 months correlation between Gentex and Aeva is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gentex and Aeva Technologies, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies, Common and Gentex 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 Gentex are associated (or correlated) with Aeva Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeva Technologies, Common has no effect on the direction of Gentex i.e., Gentex and Aeva Technologies, go up and down completely randomly.

Pair Corralation between Gentex and Aeva Technologies,

Given the investment horizon of 90 days Gentex is expected to under-perform the Aeva Technologies,. But the stock apears to be less risky and, when comparing its historical volatility, Gentex is 3.91 times less risky than Aeva Technologies,. The stock trades about -0.12 of its potential returns per unit of risk. The Aeva Technologies, Common is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Gentex  vs.  Aeva Technologies, Common

Gentex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gentex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Aeva Technologies, Common

Risk-Adjusted Performance

Modest

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.

Pair Trading with Gentex and Aeva Technologies,

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

The idea behind Gentex and Aeva Technologies, Common 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.