Correlation Between Ehang Holdings and Intuitive Machines
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Intuitive Machines 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 Intuitive Machines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Intuitive Machines, you can compare the effects of market volatilities on Ehang Holdings and Intuitive Machines 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 Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Intuitive Machines.
Diversification Opportunities for Ehang Holdings and Intuitive Machines
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ehang and Intuitive is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines 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 Intuitive Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Machines has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Intuitive Machines go up and down completely randomly.
Pair Corralation between Ehang Holdings and Intuitive Machines
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 1.03 times more return on investment than Intuitive Machines. However, Ehang Holdings is 1.03 times more volatile than Intuitive Machines. It trades about 0.3 of its potential returns per unit of risk. Intuitive Machines is currently generating about -0.26 per unit of risk. If you would invest 1,673 in Ehang Holdings on November 30, 2024 and sell it today you would earn a total of 692.00 from holding Ehang Holdings or generate 41.36% 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. Intuitive Machines
Performance |
Timeline |
Ehang Holdings |
Intuitive Machines |
Ehang Holdings and Intuitive Machines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ehang Holdings and Intuitive Machines
The main advantage of trading using opposite Ehang Holdings and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Intuitive Machines 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 Intuitive Machines will offset losses from the drop in Intuitive Machines' long position.Ehang Holdings vs. Archer Aviation | ||
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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