Correlation Between Ehang Holdings and AMREP
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and AMREP 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 AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and AMREP, you can compare the effects of market volatilities on Ehang Holdings and AMREP 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 AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and AMREP.
Diversification Opportunities for Ehang Holdings and AMREP
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ehang and AMREP is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP 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 AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and AMREP go up and down completely randomly.
Pair Corralation between Ehang Holdings and AMREP
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 1.01 times more return on investment than AMREP. However, Ehang Holdings is 1.01 times more volatile than AMREP. It trades about 0.33 of its potential returns per unit of risk. AMREP is currently generating about 0.11 per unit of risk. If you would invest 1,518 in Ehang Holdings on November 8, 2024 and sell it today you would earn a total of 302.00 from holding Ehang Holdings or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ehang Holdings vs. AMREP
Performance |
| Timeline |
| Ehang Holdings |
| AMREP |
Ehang Holdings and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and AMREP
The main advantage of trading using opposite Ehang Holdings and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| Ehang Holdings vs. Novocure | Ehang Holdings vs. HubSpot | Ehang Holdings vs. DigitalOcean Holdings | Ehang Holdings vs. Appian Corp |
| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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