Correlation Between Eve Holding and Hexcel

Can any of the company-specific risk be diversified away by investing in both Eve Holding and Hexcel 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 Eve Holding and Hexcel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eve Holding and Hexcel, you can compare the effects of market volatilities on Eve Holding and Hexcel 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 Eve Holding with a short position of Hexcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Hexcel.

Diversification Opportunities for Eve Holding and Hexcel

0.9

Correlation Coefficient

Eve Holding  Hexcel

Almost no diversification

The 3 months correlation between Eve and Hexcel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel and Eve Holding 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 Eve Holding are associated (or correlated) with Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of Eve Holding i.e., Eve Holding and Hexcel go up and down completely randomly.

Pair Corralation between Eve Holding and Hexcel

Given the investment horizon of 90 days Eve Holding is expected to generate 3.27 times more return on investment than Hexcel. However, Eve Holding is 3.27 times more volatile than Hexcel. It trades about 0.19 of its potential returns per unit of risk. Hexcel is currently generating about 0.21 per unit of risk. If you would invest  384.00  in Eve Holding on April 24, 2025 and sell it today you would earn a total of  273.00  from holding Eve Holding or generate 71.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Eve Holding  vs.  Hexcel

Eve Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eve Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Eve Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Hexcel

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Hexcel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eve Holding and Hexcel

The main advantage of trading using opposite Eve Holding and Hexcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding position performs unexpectedly, Hexcel 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 Hexcel will offset losses from the drop in Hexcel's long position.

The idea behind Eve Holding and Hexcel 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.