Correlation Between A2Z Smart and Ehang Holdings
Can any of the company-specific risk be diversified away by investing in both A2Z Smart 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 A2Z Smart and Ehang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A2Z Smart Technologies and Ehang Holdings, you can compare the effects of market volatilities on A2Z Smart 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 A2Z Smart with a short position of Ehang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2Z Smart and Ehang Holdings.
Diversification Opportunities for A2Z Smart and Ehang Holdings
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between A2Z and Ehang is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding A2Z Smart Technologies and Ehang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings and A2Z Smart 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 A2Z Smart Technologies 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 A2Z Smart i.e., A2Z Smart and Ehang Holdings go up and down completely randomly.
Pair Corralation between A2Z Smart and Ehang Holdings
Allowing for the 90-day total investment horizon A2Z Smart Technologies is expected to under-perform the Ehang Holdings. In addition to that, A2Z Smart is 1.06 times more volatile than Ehang Holdings. It trades about -0.02 of its total potential returns per unit of risk. Ehang Holdings is currently generating about 0.07 per unit of volatility. If you would invest 712.00 in Ehang Holdings on January 30, 2024 and sell it today you would earn a total of 1,112 from holding Ehang Holdings or generate 156.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
A2Z Smart Technologies vs. Ehang Holdings
Performance |
Timeline |
A2Z Smart Technologies |
Ehang Holdings |
A2Z Smart and Ehang Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with A2Z Smart and Ehang Holdings
The main advantage of trading using opposite A2Z Smart and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2Z Smart 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.A2Z Smart vs. Innovative Solutions and | A2Z Smart vs. National Presto Industries | A2Z Smart vs. Hexcel | A2Z Smart vs. Park Electrochemical |
Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Terran Orbital Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
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 | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |