Correlation Between Ehang Holdings and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Curtiss Wright 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 Ehang Holdings and Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Curtiss Wright, you can compare the effects of market volatilities on Ehang Holdings and Curtiss Wright 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 Ehang Holdings with a short position of Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Curtiss Wright.
Diversification Opportunities for Ehang Holdings and Curtiss Wright
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ehang and Curtiss is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Curtiss Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Wright and Ehang Holdings 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 Ehang Holdings are associated (or correlated) with Curtiss Wright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss Wright has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Curtiss Wright go up and down completely randomly.
Pair Corralation between Ehang Holdings and Curtiss Wright
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 3.22 times more return on investment than Curtiss Wright. However, Ehang Holdings is 3.22 times more volatile than Curtiss Wright. It trades about 0.09 of its potential returns per unit of risk. Curtiss Wright is currently generating about 0.06 per unit of risk. If you would invest 1,177 in Ehang Holdings on September 23, 2024 and sell it today you would earn a total of 324.00 from holding Ehang Holdings or generate 27.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ehang Holdings vs. Curtiss Wright
Performance |
Timeline |
Ehang Holdings |
Curtiss Wright |
Ehang Holdings and Curtiss Wright Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ehang Holdings and Curtiss Wright
The main advantage of trading using opposite Ehang Holdings and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Curtiss Wright 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 Curtiss Wright will offset losses from the drop in Curtiss Wright's long position.Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Lilium NV |
Curtiss Wright vs. Ehang Holdings | Curtiss Wright vs. GE Aerospace | Curtiss Wright vs. Planet Labs PBC | Curtiss Wright vs. Draganfly |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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