Correlation Between Allego and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Allego and Hesai Group 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 Allego and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allego Inc and Hesai Group American, you can compare the effects of market volatilities on Allego and Hesai Group 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 Allego with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allego and Hesai Group.
Diversification Opportunities for Allego and Hesai Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allego and Hesai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Allego Inc and Hesai Group American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hesai Group American and Allego 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 Allego Inc are associated (or correlated) with Hesai Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hesai Group American has no effect on the direction of Allego i.e., Allego and Hesai Group go up and down completely randomly.
Pair Corralation between Allego and Hesai Group
If you would invest 464.00 in Hesai Group American on August 30, 2024 and sell it today you would earn a total of 271.00 from holding Hesai Group American or generate 58.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Allego Inc vs. Hesai Group American
Performance |
| Timeline |
| Allego Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Hesai Group American |
Allego and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allego and Hesai Group
The main advantage of trading using opposite Allego and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allego position performs unexpectedly, Hesai Group 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 Hesai Group will offset losses from the drop in Hesai Group's long position.| Allego vs. Lear Corporation | Allego vs. Autoliv | Allego vs. American Axle Manufacturing | Allego vs. Dorman Products |
| Hesai Group vs. Park Ohio Holdings | Hesai Group vs. Datadog | Hesai Group vs. CECO Environmental Corp | Hesai Group vs. Nextplat 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 CEOs Directory module to screen CEOs from public companies around the world.
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