Correlation Between Ehang Holdings and Core Main
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Core Main 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 Core Main into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Core Main, you can compare the effects of market volatilities on Ehang Holdings and Core Main 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 Core Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Core Main.
Diversification Opportunities for Ehang Holdings and Core Main
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ehang and Core is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Core Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Main 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 Core Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Main has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Core Main go up and down completely randomly.
Pair Corralation between Ehang Holdings and Core Main
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 1.92 times more return on investment than Core Main. However, Ehang Holdings is 1.92 times more volatile than Core Main. It trades about 0.06 of its potential returns per unit of risk. Core Main is currently generating about 0.08 per unit of risk. If you would invest 1,364 in Ehang Holdings on November 2, 2024 and sell it today you would earn a total of 309.00 from holding Ehang Holdings or generate 22.65% 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. Core Main
Performance |
| Timeline |
| Ehang Holdings |
| Core Main |
Ehang Holdings and Core Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Core Main
The main advantage of trading using opposite Ehang Holdings and Core Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Core Main 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 Core Main will offset losses from the drop in Core Main's long position.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
| Core Main vs. Distribution Solutions Group | Core Main vs. Global Industrial Co | Core Main vs. Applied Industrial Technologies | Core Main vs. BlueLinx Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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