Correlation Between Ehang Holdings and Satellogic
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Satellogic 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 Satellogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Satellogic V, you can compare the effects of market volatilities on Ehang Holdings and Satellogic 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 Satellogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Satellogic.
Diversification Opportunities for Ehang Holdings and Satellogic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ehang and Satellogic is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V 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 Satellogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic V has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Satellogic go up and down completely randomly.
Pair Corralation between Ehang Holdings and Satellogic
Allowing for the 90-day total investment horizon Ehang Holdings is expected to under-perform the Satellogic. But the stock apears to be less risky and, when comparing its historical volatility, Ehang Holdings is 1.38 times less risky than Satellogic. The stock trades about -0.21 of its potential returns per unit of risk. The Satellogic V is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Satellogic V on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Satellogic V or generate 38.61% 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. Satellogic V
Performance |
| Timeline |
| Ehang Holdings |
| Satellogic V |
Ehang Holdings and Satellogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Satellogic
The main advantage of trading using opposite Ehang Holdings and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Satellogic 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 Satellogic will offset losses from the drop in Satellogic's long position.| Ehang Holdings vs. Redwire Corp | Ehang Holdings vs. Sidus Space | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Momentus |
| Satellogic vs. The Boeing | Satellogic vs. Curtiss Wright | Satellogic vs. Ehang Holdings | Satellogic vs. General Dynamics |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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