Correlation Between Eve Holding and Sky Harbour
Can any of the company-specific risk be diversified away by investing in both Eve Holding and Sky Harbour 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 Sky Harbour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eve Holding and Sky Harbour Group, you can compare the effects of market volatilities on Eve Holding and Sky Harbour 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 Sky Harbour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Sky Harbour.
Diversification Opportunities for Eve Holding and Sky Harbour
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eve and Sky is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Sky Harbour Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Harbour Group 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 Sky Harbour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Harbour Group has no effect on the direction of Eve Holding i.e., Eve Holding and Sky Harbour go up and down completely randomly.
Pair Corralation between Eve Holding and Sky Harbour
Given the investment horizon of 90 days Eve Holding is expected to under-perform the Sky Harbour. In addition to that, Eve Holding is 1.15 times more volatile than Sky Harbour Group. It trades about -0.01 of its total potential returns per unit of risk. Sky Harbour Group is currently generating about 0.01 per unit of volatility. If you would invest 1,201 in Sky Harbour Group on September 1, 2024 and sell it today you would lose (73.00) from holding Sky Harbour Group or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eve Holding vs. Sky Harbour Group
Performance |
| Timeline |
| Eve Holding |
| Sky Harbour Group |
Eve Holding and Sky Harbour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Sky Harbour
The main advantage of trading using opposite Eve Holding and Sky Harbour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding position performs unexpectedly, Sky Harbour 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 Sky Harbour will offset losses from the drop in Sky Harbour's long position.| Eve Holding vs. Heico | Eve Holding vs. Mercury Systems | Eve Holding vs. AeroVironment | Eve Holding vs. Howmet Aerospace |
| Sky Harbour vs. Ducommun Incorporated | Sky Harbour vs. Innovative Solutions and | Sky Harbour vs. National Presto Industries | Sky Harbour vs. Astronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |