Correlation Between Drone Delivery and Ehang Holdings

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

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

Diversification Opportunities for Drone Delivery and Ehang Holdings

0.34

Correlation Coefficient

Drone Delivery  Ehang Holdings

Weak diversification

The 3 months correlation between Drone and Ehang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Drone Delivery Canada and Ehang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings and Drone Delivery 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 Drone Delivery Canada 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 Drone Delivery i.e., Drone Delivery and Ehang Holdings go up and down completely randomly.

Pair Corralation between Drone Delivery and Ehang Holdings

Assuming the 90 days horizon Drone Delivery Canada is expected to generate 4.12 times more return on investment than Ehang Holdings. However, Drone Delivery is 4.12 times more volatile than Ehang Holdings. It trades about 0.24 of its potential returns per unit of risk. Ehang Holdings is currently generating about -0.03 per unit of risk. If you would invest  11.00  in Drone Delivery Canada on May 7, 2025 and sell it today you would earn a total of  30.00  from holding Drone Delivery Canada or generate 272.73% return on investment over 90 days.

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

Drone Delivery Canada  vs.  Ehang Holdings

Drone Delivery Canada

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Drone Delivery Canada are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Drone Delivery reported solid returns over the last few months and may actually be approaching a breakup point.

Ehang Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ehang Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Ehang Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Drone Delivery and Ehang Holdings

The main advantage of trading using opposite Drone Delivery and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Drone Delivery 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.

The idea behind Drone Delivery Canada and Ehang Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.