Correlation Between Ehang Holdings and Agrify Corp
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Agrify Corp 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 Ehang Holdings and Agrify Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Agrify Corp, you can compare the effects of market volatilities on Ehang Holdings and Agrify Corp 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 Ehang Holdings with a short position of Agrify Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Agrify Corp.
Diversification Opportunities for Ehang Holdings and Agrify Corp
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ehang and Agrify is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp and Ehang Holdings 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 Ehang Holdings are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Agrify Corp go up and down completely randomly.
Pair Corralation between Ehang Holdings and Agrify Corp
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 0.32 times more return on investment than Agrify Corp. However, Ehang Holdings is 3.09 times less risky than Agrify Corp. It trades about 0.41 of its potential returns per unit of risk. Agrify Corp is currently generating about -0.09 per unit of risk. If you would invest 1,470 in Ehang Holdings on November 9, 2024 and sell it today you would earn a total of 349.50 from holding Ehang Holdings or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ehang Holdings vs. Agrify Corp
Performance |
| Timeline |
| Ehang Holdings |
| Agrify Corp |
Ehang Holdings and Agrify Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Agrify Corp
The main advantage of trading using opposite Ehang Holdings and Agrify Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Agrify Corp 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 Agrify Corp will offset losses from the drop in Agrify Corp's long position.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |