Correlation Between Vita Coco and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Vita Coco 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 Vita Coco and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vita Coco and Hesai Group American, you can compare the effects of market volatilities on Vita Coco 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 Vita Coco with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and Hesai Group.
Diversification Opportunities for Vita Coco and Hesai Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vita and Hesai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco 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 Vita Coco 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 Vita Coco 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 Vita Coco i.e., Vita Coco and Hesai Group go up and down completely randomly.
Pair Corralation between Vita Coco and Hesai Group
Given the investment horizon of 90 days Vita Coco is expected to generate 25.73 times less return on investment than Hesai Group. But when comparing it to its historical volatility, Vita Coco is 7.15 times less risky than Hesai Group. It trades about 0.08 of its potential returns per unit of risk. Hesai Group American is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Hesai Group American on September 4, 2024 and sell it today you would earn a total of 314.00 from holding Hesai Group American or generate 69.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vita Coco vs. Hesai Group American
Performance |
| Timeline |
| Vita Coco |
| Hesai Group American |
Vita Coco and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and Hesai Group
The main advantage of trading using opposite Vita Coco and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco 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.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
| Hesai Group vs. PepsiCo | Hesai Group vs. Vita Coco | Hesai Group vs. Celsius Holdings | Hesai Group vs. Genfit |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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