Correlation Between Ehang Holdings and Ageagle Aerial
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Ageagle Aerial 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 Ageagle Aerial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Ageagle Aerial Systems, you can compare the effects of market volatilities on Ehang Holdings and Ageagle Aerial 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 Ageagle Aerial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Ageagle Aerial.
Diversification Opportunities for Ehang Holdings and Ageagle Aerial
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ehang and Ageagle is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Ageagle Aerial Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageagle Aerial Systems 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 Ageagle Aerial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageagle Aerial Systems has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Ageagle Aerial go up and down completely randomly.
Pair Corralation between Ehang Holdings and Ageagle Aerial
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 2.63 times less return on investment than Ageagle Aerial. But when comparing it to its historical volatility, Ehang Holdings is 4.04 times less risky than Ageagle Aerial. It trades about 0.04 of its potential returns per unit of risk. Ageagle Aerial Systems is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Ageagle Aerial Systems on August 27, 2024 and sell it today you would lose (851.00) from holding Ageagle Aerial Systems or give up 70.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ehang Holdings vs. Ageagle Aerial Systems
Performance |
| Timeline |
| Ehang Holdings |
| Ageagle Aerial Systems |
Ehang Holdings and Ageagle Aerial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ehang Holdings and Ageagle Aerial
The main advantage of trading using opposite Ehang Holdings and Ageagle Aerial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Ageagle Aerial 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 Ageagle Aerial will offset losses from the drop in Ageagle Aerial's long position.| Ehang Holdings vs. Redwire Corp | Ehang Holdings vs. Sidus Space | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Momentus |
| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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