Correlation Between Ehang Holdings and StandardAero,
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and StandardAero, 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 StandardAero, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and StandardAero,, you can compare the effects of market volatilities on Ehang Holdings and StandardAero, 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 StandardAero,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and StandardAero,.
Diversification Opportunities for Ehang Holdings and StandardAero,
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ehang and StandardAero, is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and StandardAero, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StandardAero, 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 StandardAero,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StandardAero, has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and StandardAero, go up and down completely randomly.
Pair Corralation between Ehang Holdings and StandardAero,
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 2.8 times less return on investment than StandardAero,. But when comparing it to its historical volatility, Ehang Holdings is 1.06 times less risky than StandardAero,. It trades about 0.03 of its potential returns per unit of risk. StandardAero, is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,400 in StandardAero, on August 31, 2024 and sell it today you would earn a total of 450.00 from holding StandardAero, or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 9.01% |
| Values | Daily Returns |
Ehang Holdings vs. StandardAero,
Performance |
| Timeline |
| Ehang Holdings |
| StandardAero, |
Ehang Holdings and StandardAero, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and StandardAero,
The main advantage of trading using opposite Ehang Holdings and StandardAero, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, StandardAero, 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 StandardAero, will offset losses from the drop in StandardAero,'s long position.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
| StandardAero, vs. GoHealth | StandardAero, vs. Aegon NV ADR | StandardAero, vs. QBE Insurance Group | StandardAero, vs. Summit Materials |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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