Correlation Between Boeing and Ehang Holdings
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.
By analyzing existing cross correlation between The Boeing 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.
Diversification Opportunities for Boeing and Ehang Holdings
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boeing and Ehang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Ehang Holdings 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 The Boeing 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 The Boeing is expected to under-perform the Ehang Holdings. But the stock apears to be less risky and, when comparing its historical volatility, The Boeing is 3.67 times less risky than Ehang Holdings. The stock trades about -0.38 of its potential returns per unit of risk. The Ehang Holdings is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,024 in Ehang Holdings on December 19, 2023 and sell it today you would earn a total of 526.00 from holding Ehang Holdings or generate 51.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
The Boeing vs. Ehang Holdings
Performance |
Timeline |
Boeing |
Ehang Holdings |
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.Boeing vs. Eve Holding | Boeing vs. Draganfly | Boeing vs. A2Z Smart Technologies | Boeing vs. Planet Labs PBC |
Ehang Holdings vs. Eve Holding | Ehang Holdings vs. Draganfly | Ehang Holdings vs. A2Z Smart Technologies | Ehang Holdings vs. Planet Labs PBC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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