Correlation Between HubSpot and Ehang Holdings
Can any of the company-specific risk be diversified away by investing in both HubSpot 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 HubSpot and Ehang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HubSpot and Ehang Holdings, you can compare the effects of market volatilities on HubSpot 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 HubSpot with a short position of Ehang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HubSpot and Ehang Holdings.
Diversification Opportunities for HubSpot and Ehang Holdings
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HubSpot and Ehang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HubSpot and Ehang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings and HubSpot 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 HubSpot 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 HubSpot i.e., HubSpot and Ehang Holdings go up and down completely randomly.
Pair Corralation between HubSpot and Ehang Holdings
Given the investment horizon of 90 days HubSpot is expected to under-perform the Ehang Holdings. But the stock apears to be less risky and, when comparing its historical volatility, HubSpot is 2.69 times less risky than Ehang Holdings. The stock trades about -0.26 of its potential returns per unit of risk. The Ehang Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,695 in Ehang Holdings on December 6, 2024 and sell it today you would earn a total of 650.00 from holding Ehang Holdings or generate 38.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HubSpot vs. Ehang Holdings
Performance |
| Timeline |
| HubSpot |
| Ehang Holdings |
HubSpot and Ehang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HubSpot and Ehang Holdings
The main advantage of trading using opposite HubSpot and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HubSpot 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.The idea behind HubSpot and Ehang Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |