Correlation Between Ehang Holdings and Draganfly
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Draganfly 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 Draganfly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Draganfly, you can compare the effects of market volatilities on Ehang Holdings and Draganfly 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 Draganfly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Draganfly.
Diversification Opportunities for Ehang Holdings and Draganfly
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ehang and Draganfly is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings and Draganfly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Draganfly 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 Draganfly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Draganfly has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Draganfly go up and down completely randomly.
Pair Corralation between Ehang Holdings and Draganfly
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 0.69 times more return on investment than Draganfly. However, Ehang Holdings is 1.45 times less risky than Draganfly. It trades about 0.07 of its potential returns per unit of risk. Draganfly is currently generating about -0.04 per unit of risk. If you would invest 1,387 in Ehang Holdings on January 30, 2024 and sell it today you would earn a total of 437.00 from holding Ehang Holdings or generate 31.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ehang Holdings vs. Draganfly
Performance |
Timeline |
Ehang Holdings |
Draganfly |
Ehang Holdings and Draganfly Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ehang Holdings and Draganfly
The main advantage of trading using opposite Ehang Holdings and Draganfly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Draganfly 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 Draganfly will offset losses from the drop in Draganfly's long position.Ehang Holdings vs. Archer Aviation | Ehang Holdings vs. Vertical Aerospace | Ehang Holdings vs. Rocket Lab USA | Ehang Holdings vs. Terran Orbital Corp |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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