Correlation Between Aeye and Aeva Technologies,

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

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

Diversification Opportunities for Aeye and Aeva Technologies,

0.7

Correlation Coefficient

Aeye  Aeva Technologies,

Poor diversification

The 3 months correlation between Aeye and Aeva is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aeye Inc 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 Aeye 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 Aeye Inc 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 Aeye i.e., Aeye and Aeva Technologies, go up and down completely randomly.

Pair Corralation between Aeye and Aeva Technologies,

Given the investment horizon of 90 days Aeye Inc is expected to under-perform the Aeva Technologies,. In addition to that, Aeye is 1.7 times more volatile than Aeva Technologies, Common. It trades about -0.33 of its total potential returns per unit of risk. Aeva Technologies, Common is currently generating about -0.11 per unit of volatility. If you would invest  397.00  in Aeva Technologies, Common on November 29, 2024 and sell it today you would lose (31.00) from holding Aeva Technologies, Common or give up 7.81% of portfolio value over 90 days.

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

Aeye Inc  vs.  Aeva Technologies, Common

Aeye Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aeye Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Aeye is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Aeva Technologies, Common

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Aeye and Aeva Technologies,

The main advantage of trading using opposite Aeye and Aeva Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeye 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 Aeye Inc 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.