Correlation Between Ehang Holdings and Ammo Preferred
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Ammo Preferred 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 Ammo Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Ammo Preferred, you can compare the effects of market volatilities on Ehang Holdings and Ammo Preferred 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 Ammo Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Ammo Preferred.
Diversification Opportunities for Ehang Holdings and Ammo Preferred
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ehang and Ammo is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Ammo Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ammo Preferred 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 Ammo Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ammo Preferred has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Ammo Preferred go up and down completely randomly.
Pair Corralation between Ehang Holdings and Ammo Preferred
Allowing for the 90-day total investment horizon Ehang Holdings is expected to under-perform the Ammo Preferred. In addition to that, Ehang Holdings is 1.35 times more volatile than Ammo Preferred. It trades about -0.12 of its total potential returns per unit of risk. Ammo Preferred is currently generating about 0.09 per unit of volatility. If you would invest 2,023 in Ammo Preferred on August 28, 2024 and sell it today you would earn a total of 134.00 from holding Ammo Preferred or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ehang Holdings vs. Ammo Preferred
Performance |
| Timeline |
| Ehang Holdings |
| Ammo Preferred |
Ehang Holdings and Ammo Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Ammo Preferred
The main advantage of trading using opposite Ehang Holdings and Ammo Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Ammo Preferred 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 Ammo Preferred will offset losses from the drop in Ammo Preferred's long position.| Ehang Holdings vs. Sidus Space | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Momentus | Ehang Holdings vs. Planet Labs PBC |
| Ammo Preferred vs. Ammo Inc | Ammo Preferred vs. XOMA Corporation | Ammo Preferred vs. Presidio Property Trust | Ammo Preferred vs. XOMA Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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