Correlation Between Eve Holding and Ehang Holdings
Can any of the company-specific risk be diversified away by investing in both Eve Holding and Ehang Holdings 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 Eve Holding and Ehang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eve Holding and Ehang Holdings, you can compare the effects of market volatilities on Eve Holding and Ehang Holdings 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 Eve Holding with a short position of Ehang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Ehang Holdings.
Diversification Opportunities for Eve Holding and Ehang Holdings
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eve and Ehang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Ehang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings and Eve Holding 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 Eve Holding are associated (or correlated) with Ehang Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehang Holdings has no effect on the direction of Eve Holding i.e., Eve Holding and Ehang Holdings go up and down completely randomly.
Pair Corralation between Eve Holding and Ehang Holdings
Given the investment horizon of 90 days Eve Holding is expected to generate 0.99 times more return on investment than Ehang Holdings. However, Eve Holding is 1.01 times less risky than Ehang Holdings. It trades about 0.17 of its potential returns per unit of risk. Ehang Holdings is currently generating about -0.13 per unit of risk. If you would invest 339.00 in Eve Holding on August 27, 2024 and sell it today you would earn a total of 64.00 from holding Eve Holding or generate 18.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eve Holding vs. Ehang Holdings
Performance |
| Timeline |
| Eve Holding |
| Ehang Holdings |
Eve Holding and Ehang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Ehang Holdings
The main advantage of trading using opposite Eve Holding and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding position performs unexpectedly, Ehang Holdings 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 Ehang Holdings will offset losses from the drop in Ehang Holdings' long position.| Eve Holding vs. Heico | Eve Holding vs. Mercury Systems | Eve Holding vs. AeroVironment | Eve Holding vs. Howmet Aerospace |
| Ehang Holdings vs. Redwire Corp | Ehang Holdings vs. Sidus Space | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Momentus |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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