Correlation Between CVW CleanTech and Hesai Group
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech 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 CVW CleanTech and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Hesai Group American, you can compare the effects of market volatilities on CVW CleanTech 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 CVW CleanTech with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Hesai Group.
Diversification Opportunities for CVW CleanTech and Hesai Group
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between CVW and Hesai is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech i.e., CVW CleanTech and Hesai Group go up and down completely randomly.
Pair Corralation between CVW CleanTech and Hesai Group
Assuming the 90 days horizon CVW CleanTech is expected to generate 8.73 times less return on investment than Hesai Group. But when comparing it to its historical volatility, CVW CleanTech is 5.25 times less risky than Hesai Group. It trades about 0.03 of its potential returns per unit of risk. Hesai Group American is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Hesai Group American on October 20, 2024 and sell it today you would earn a total of 1,559 from holding Hesai Group American or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
CVW CleanTech vs. Hesai Group American
Performance |
| Timeline |
| CVW CleanTech |
| Hesai Group American |
CVW CleanTech and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Hesai Group
The main advantage of trading using opposite CVW CleanTech and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech 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.| CVW CleanTech vs. National CineMedia | CVW CleanTech vs. Here Media | CVW CleanTech vs. Ubisoft Entertainment | CVW CleanTech vs. Univest Pennsylvania |
| Hesai Group vs. CVW CleanTech | Hesai Group vs. Vita Coco | Hesai Group vs. Northstar Clean Technologies | Hesai Group vs. Aduro Clean Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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