Correlation Between Ehang Holdings and Marten Transport
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Marten Transport 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 Marten Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Marten Transport, you can compare the effects of market volatilities on Ehang Holdings and Marten Transport 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 Marten Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Marten Transport.
Diversification Opportunities for Ehang Holdings and Marten Transport
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ehang and Marten is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Marten Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marten Transport 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 Marten Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marten Transport has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Marten Transport go up and down completely randomly.
Pair Corralation between Ehang Holdings and Marten Transport
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 3.7 times more return on investment than Marten Transport. However, Ehang Holdings is 3.7 times more volatile than Marten Transport. It trades about 0.05 of its potential returns per unit of risk. Marten Transport is currently generating about -0.01 per unit of risk. If you would invest 768.00 in Ehang Holdings on August 24, 2024 and sell it today you would earn a total of 638.00 from holding Ehang Holdings or generate 83.07% 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. Marten Transport
Performance |
| Timeline |
| Ehang Holdings |
| Marten Transport |
Ehang Holdings and Marten Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Marten Transport
The main advantage of trading using opposite Ehang Holdings and Marten Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Marten Transport 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 Marten Transport will offset losses from the drop in Marten Transport's long position.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
| Marten Transport vs. Werner Enterprises | Marten Transport vs. Covenant Logistics Group, | Marten Transport vs. Universal Logistics Holdings | Marten Transport vs. Schneider National |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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