Correlation Between Ehang Holdings and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Multi Ways 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 Multi Ways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Multi Ways Holdings, you can compare the effects of market volatilities on Ehang Holdings and Multi Ways 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 Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Multi Ways.
Diversification Opportunities for Ehang Holdings and Multi Ways
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ehang and Multi is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways Holdings 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 Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Multi Ways go up and down completely randomly.
Pair Corralation between Ehang Holdings and Multi Ways
Allowing for the 90-day total investment horizon Ehang Holdings is expected to under-perform the Multi Ways. In addition to that, Ehang Holdings is 1.49 times more volatile than Multi Ways Holdings. It trades about -0.03 of its total potential returns per unit of risk. Multi Ways Holdings is currently generating about 0.01 per unit of volatility. If you would invest 24.00 in Multi Ways Holdings on September 18, 2024 and sell it today you would lose (0.01) from holding Multi Ways Holdings or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ehang Holdings vs. Multi Ways Holdings
Performance |
| Timeline |
| Ehang Holdings |
| Multi Ways Holdings |
Ehang Holdings and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Multi Ways
The main advantage of trading using opposite Ehang Holdings and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Ehang Holdings vs. Novocure | Ehang Holdings vs. HubSpot | Ehang Holdings vs. DigitalOcean Holdings | Ehang Holdings vs. Appian Corp |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |