Correlation Between Ehang Holdings and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Cadre Holdings 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 Cadre Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Cadre Holdings, you can compare the effects of market volatilities on Ehang Holdings and Cadre Holdings 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 Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Cadre Holdings.
Diversification Opportunities for Ehang Holdings and Cadre Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ehang and Cadre is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre Holdings 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 Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Cadre Holdings go up and down completely randomly.
Pair Corralation between Ehang Holdings and Cadre Holdings
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 1.05 times less return on investment than Cadre Holdings. In addition to that, Ehang Holdings is 2.44 times more volatile than Cadre Holdings. It trades about 0.01 of its total potential returns per unit of risk. Cadre Holdings is currently generating about 0.02 per unit of volatility. If you would invest 3,187 in Cadre Holdings on August 26, 2024 and sell it today you would earn a total of 161.00 from holding Cadre Holdings or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ehang Holdings vs. Cadre Holdings
Performance |
| Timeline |
| Ehang Holdings |
| Cadre Holdings |
Ehang Holdings and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Cadre Holdings
The main advantage of trading using opposite Ehang Holdings and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Cadre Holdings 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| Ehang Holdings vs. Redwire Corp | Ehang Holdings vs. Sidus Space | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Momentus |
| Cadre Holdings vs. The Boeing | Cadre Holdings vs. Curtiss Wright | Cadre Holdings vs. Ehang Holdings | Cadre Holdings vs. General Dynamics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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