Correlation Between Aeva Technologies, and Innoviz Technologies
Can any of the company-specific risk be diversified away by investing in both Aeva Technologies, and Innoviz 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 Aeva Technologies, and Innoviz Technologies 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 Innoviz Technologies, you can compare the effects of market volatilities on Aeva Technologies, and Innoviz 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 Aeva Technologies, with a short position of Innoviz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies, and Innoviz Technologies.
Diversification Opportunities for Aeva Technologies, and Innoviz Technologies
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aeva and Innoviz is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies, Common and Innoviz Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innoviz Technologies 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 Innoviz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innoviz Technologies has no effect on the direction of Aeva Technologies, i.e., Aeva Technologies, and Innoviz Technologies go up and down completely randomly.
Pair Corralation between Aeva Technologies, and Innoviz Technologies
Given the investment horizon of 90 days Aeva Technologies, Common is expected to generate 1.47 times more return on investment than Innoviz Technologies. However, Aeva Technologies, is 1.47 times more volatile than Innoviz Technologies. It trades about 0.4 of its potential returns per unit of risk. Innoviz Technologies is currently generating about 0.13 per unit of risk. If you would invest 1,112 in Aeva Technologies, Common on March 10, 2025 and sell it today you would earn a total of 978.00 from holding Aeva Technologies, Common or generate 87.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeva Technologies, Common vs. Innoviz Technologies
Performance |
| Timeline |
| Aeva Technologies, Common |
| Innoviz Technologies |
Aeva Technologies, and Innoviz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeva Technologies, and Innoviz Technologies
The main advantage of trading using opposite Aeva Technologies, and Innoviz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeva Technologies, position performs unexpectedly, Innoviz 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 Innoviz Technologies will offset losses from the drop in Innoviz Technologies' long position.| Aeva Technologies, vs. Innoviz Technologies | Aeva Technologies, vs. Hesai Group American | Aeva Technologies, vs. Luminar Technologies | Aeva Technologies, vs. Aeye Inc |
| Innoviz Technologies vs. Aeye Inc | Innoviz Technologies vs. Luminar Technologies | Innoviz Technologies vs. Hesai Group American | Innoviz Technologies 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |