Correlation Between Xos Equity and Aeva Technologies
Can any of the company-specific risk be diversified away by investing in both Xos Equity 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 Xos Equity and Aeva Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xos Equity Warrants and Aeva Technologies, you can compare the effects of market volatilities on Xos Equity 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 Xos Equity with a short position of Aeva Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xos Equity and Aeva Technologies.
Diversification Opportunities for Xos Equity and Aeva Technologies
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xos and Aeva is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Xos Equity Warrants and Aeva Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeva Technologies and Xos Equity 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 Xos Equity Warrants 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 has no effect on the direction of Xos Equity i.e., Xos Equity and Aeva Technologies go up and down completely randomly.
Pair Corralation between Xos Equity and Aeva Technologies
Assuming the 90 days horizon Xos Equity Warrants is expected to generate 4.64 times more return on investment than Aeva Technologies. However, Xos Equity is 4.64 times more volatile than Aeva Technologies. It trades about 0.02 of its potential returns per unit of risk. Aeva Technologies is currently generating about -0.02 per unit of risk. If you would invest 0.61 in Xos Equity Warrants on September 26, 2024 and sell it today you would lose (0.15) from holding Xos Equity Warrants or give up 24.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xos Equity Warrants vs. Aeva Technologies
Performance |
Timeline |
Xos Equity Warrants |
Aeva Technologies |
Xos Equity and Aeva Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xos Equity and Aeva Technologies
The main advantage of trading using opposite Xos Equity and Aeva Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xos Equity 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' long position.Xos Equity vs. Microvast Holdings | Xos Equity vs. EVgo Equity Warrants | Xos Equity vs. Faraday Future Intelligent | Xos Equity vs. Xos Inc |
Aeva Technologies vs. Innoviz Technologies | Aeva Technologies vs. Hesai Group American | Aeva Technologies vs. Luminar Technologies | Aeva Technologies vs. Aeye Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Stocks Directory Find actively traded stocks across global markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |