Correlation Between Ehang Holdings and Boeing

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ehang Holdings and Boeing 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 Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Boeing Company, you can compare the effects of market volatilities on Ehang Holdings and Boeing 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 Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Boeing.

Diversification Opportunities for Ehang Holdings and Boeing

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ehang and Boeing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ehang Holdings Ltd and Boeing Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing Company 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 Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing Company has no effect on the direction of Ehang Holdings i.e., Ehang Holdings and Boeing go up and down completely randomly.

Pair Corralation between Ehang Holdings and Boeing

Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 3.0 times more return on investment than Boeing. However, Ehang Holdings is 3.0 times more volatile than Boeing Company. It trades about 0.02 of its potential returns per unit of risk. Boeing Company is currently generating about 0.0 per unit of risk. If you would invest  904.00  in Ehang Holdings on July 9, 2022 and sell it today you would lose (483.00)  from holding Ehang Holdings or give up 53.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ehang Holdings Ltd  vs.  Boeing Company

 Performance (%) 
       Timeline  
Ehang Holdings 
Ehang Performance
0 of 100
Over the last 90 days Ehang Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Ehang Price Channel

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Boeing Price Channel

Ehang Holdings and Boeing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ehang Holdings and Boeing

The main advantage of trading using opposite Ehang Holdings and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing's long position.
Ehang Holdings vs. Amazon Inc
The idea behind Ehang Holdings and Boeing Company 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.
Boeing vs. Amazon Inc
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go