Correlation Between Ehang Holdings and Hexcel
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Hexcel 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 Hexcel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Hexcel, you can compare the effects of market volatilities on Ehang Holdings and Hexcel 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 Hexcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Hexcel.
Diversification Opportunities for Ehang Holdings and Hexcel
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ehang and Hexcel is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel 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 Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Hexcel go up and down completely randomly.
Pair Corralation between Ehang Holdings and Hexcel
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 1.55 times more return on investment than Hexcel. However, Ehang Holdings is 1.55 times more volatile than Hexcel. It trades about 0.16 of its potential returns per unit of risk. Hexcel is currently generating about 0.16 per unit of risk. If you would invest 1,567 in Ehang Holdings on November 3, 2024 and sell it today you would earn a total of 132.00 from holding Ehang Holdings or generate 8.42% 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. Hexcel
Performance |
| Timeline |
| Ehang Holdings |
| Hexcel |
Ehang Holdings and Hexcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Hexcel
The main advantage of trading using opposite Ehang Holdings and Hexcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Hexcel 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 Hexcel will offset losses from the drop in Hexcel's long position.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
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 Positions Ratings module to 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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |