Correlation Between Boeing and Ehang Holdings

By analyzing existing cross correlation between Boeing Company and Ehang Holdings, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of Ehang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Ehang Holdings.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and Ehang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Boeing and Ehang Holdings

0.51
  Correlation Coefficient
Boeing Company
Ehang Holdings

Very weak diversification

The 3 months correlation between Boeing and Ehang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Boeing Company and Ehang Holdings Ltd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings and Boeing 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 Boeing Company 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 Boeing i.e., Boeing and Ehang Holdings go up and down completely randomly.

Pair Corralation between Boeing and Ehang Holdings

Allowing for the 90-day total investment horizon Boeing is expected to generate 3.15 times less return on investment than Ehang Holdings. But when comparing it to its historical volatility, Boeing Company is 2.82 times less risky than Ehang Holdings. It trades about 0.07 of its potential returns per unit of risk. Ehang Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,194  in Ehang Holdings on May 3, 2021 and sell it today you would earn a total of  1,436  from holding Ehang Holdings or generate 120.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.68%
ValuesDaily Returns

Boeing Company  vs.  Ehang Holdings Ltd

 Performance (%) 
      Timeline 
Boeing Company 
 Boeing Performance
0 of 100
Over the last 90 days Boeing Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Boeing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Boeing Price Channel

Ehang Holdings 
 Ehang Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ehang Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Ehang Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Ehang Price Channel

Boeing and Ehang Holdings Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Boeing and Ehang Holdings

The main advantage of trading using opposite Boeing and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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 Boeing Company 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.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go