Correlation Between Aeva Technologies, and Sypris Solutions

Can any of the company-specific risk be diversified away by investing in both Aeva Technologies, and Sypris Solutions 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 Sypris Solutions 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 Sypris Solutions, you can compare the effects of market volatilities on Aeva Technologies, and Sypris Solutions 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 Sypris Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeva Technologies, and Sypris Solutions.

Diversification Opportunities for Aeva Technologies, and Sypris Solutions

0.69

Correlation Coefficient

Aeva Technologies,  Sypris Solutions

Poor diversification

The 3 months correlation between Aeva and Sypris is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aeva Technologies, Common and Sypris Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sypris Solutions 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 Sypris Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sypris Solutions has no effect on the direction of Aeva Technologies, i.e., Aeva Technologies, and Sypris Solutions go up and down completely randomly.

Pair Corralation between Aeva Technologies, and Sypris Solutions

Given the investment horizon of 90 days Aeva Technologies, Common is expected to generate 1.07 times more return on investment than Sypris Solutions. However, Aeva Technologies, is 1.07 times more volatile than Sypris Solutions. It trades about 0.15 of its potential returns per unit of risk. Sypris Solutions is currently generating about 0.03 per unit of risk. If you would invest  299.00  in Aeva Technologies, Common on March 8, 2025 and sell it today you would earn a total of  1,606  from holding Aeva Technologies, Common or generate 537.12% return on investment over 90 days.

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

Aeva Technologies, Common  vs.  Sypris Solutions

Aeva Technologies, Common

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Aeva Technologies, Common are ranked lower than 31 (%) 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.

Sypris Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sypris Solutions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Sypris Solutions reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aeva Technologies, and Sypris Solutions

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

The idea behind Aeva Technologies, Common and Sypris Solutions 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 Transaction History module to view history of all your transactions and understand their impact on performance.