Correlation Between Ageagle Aerial and Ehang Holdings
Can any of the company-specific risk be diversified away by investing in both Ageagle Aerial 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 Ageagle Aerial and Ehang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ageagle Aerial Systems and Ehang Holdings, you can compare the effects of market volatilities on Ageagle Aerial 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 Ageagle Aerial with a short position of Ehang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageagle Aerial and Ehang Holdings.
Diversification Opportunities for Ageagle Aerial and Ehang Holdings
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ageagle and Ehang is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and Ehang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings and Ageagle Aerial 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 Ageagle Aerial Systems 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 Ageagle Aerial i.e., Ageagle Aerial and Ehang Holdings go up and down completely randomly.
Pair Corralation between Ageagle Aerial and Ehang Holdings
Given the investment horizon of 90 days Ageagle Aerial Systems is expected to generate 5.01 times more return on investment than Ehang Holdings. However, Ageagle Aerial is 5.01 times more volatile than Ehang Holdings. It trades about 0.15 of its potential returns per unit of risk. Ehang Holdings is currently generating about -0.1 per unit of risk. If you would invest 222.00 in Ageagle Aerial Systems on August 24, 2024 and sell it today you would earn a total of 98.00 from holding Ageagle Aerial Systems or generate 44.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ageagle Aerial Systems vs. Ehang Holdings
Performance |
| Timeline |
| Ageagle Aerial Systems |
| Ehang Holdings |
Ageagle Aerial and Ehang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageagle Aerial and Ehang Holdings
The main advantage of trading using opposite Ageagle Aerial and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial 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.| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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