Correlation Between Ehang Holdings and Freightos Limited
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Freightos Limited 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 Freightos Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Freightos Limited Warrants, you can compare the effects of market volatilities on Ehang Holdings and Freightos Limited 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 Freightos Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Freightos Limited.
Diversification Opportunities for Ehang Holdings and Freightos Limited
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ehang and Freightos is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Freightos Limited Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freightos Limited 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 Freightos Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freightos Limited has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Freightos Limited go up and down completely randomly.
Pair Corralation between Ehang Holdings and Freightos Limited
Allowing for the 90-day total investment horizon Ehang Holdings is expected to under-perform the Freightos Limited. But the stock apears to be less risky and, when comparing its historical volatility, Ehang Holdings is 3.19 times less risky than Freightos Limited. The stock trades about -0.13 of its potential returns per unit of risk. The Freightos Limited Warrants is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Freightos Limited Warrants on August 27, 2024 and sell it today you would earn a total of 8.50 from holding Freightos Limited Warrants or generate 130.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Ehang Holdings vs. Freightos Limited Warrants
Performance |
| Timeline |
| Ehang Holdings |
| Freightos Limited |
Ehang Holdings and Freightos Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Freightos Limited
The main advantage of trading using opposite Ehang Holdings and Freightos Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Freightos Limited 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 Freightos Limited will offset losses from the drop in Freightos Limited's long position.| Ehang Holdings vs. Redwire Corp | Ehang Holdings vs. Sidus Space | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Momentus |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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