Correlation Between Ehang Holdings and Triumph
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Triumph 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 Triumph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Triumph Group, you can compare the effects of market volatilities on Ehang Holdings and Triumph 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 Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Triumph.
Diversification Opportunities for Ehang Holdings and Triumph
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ehang and Triumph is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Group 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 Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Triumph go up and down completely randomly.
Pair Corralation between Ehang Holdings and Triumph
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 3.38 times more return on investment than Triumph. However, Ehang Holdings is 3.38 times more volatile than Triumph Group. It trades about 0.08 of its potential returns per unit of risk. Triumph Group is currently generating about 0.21 per unit of risk. If you would invest 1,497 in Ehang Holdings on October 24, 2024 and sell it today you would earn a total of 58.00 from holding Ehang Holdings or generate 3.87% 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. Triumph Group
Performance |
| Timeline |
| Ehang Holdings |
| Triumph Group |
Ehang Holdings and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Triumph
The main advantage of trading using opposite Ehang Holdings and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph's long position.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
| Triumph vs. Mercury Systems | Triumph vs. Curtiss Wright | Triumph vs. Hexcel | Triumph vs. Ducommun Incorporated |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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