Correlation Between Dana and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Dana 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 Dana and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Inc and Hesai Group American, you can compare the effects of market volatilities on Dana 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 Dana with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and Hesai Group.
Diversification Opportunities for Dana and Hesai Group
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dana and Hesai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dana 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 Dana 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 Dana 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 Dana i.e., Dana and Hesai Group go up and down completely randomly.
Pair Corralation between Dana and Hesai Group
Considering the 90-day investment horizon Dana Inc is expected to under-perform the Hesai Group. In addition to that, Dana is 1.33 times more volatile than Hesai Group American. It trades about -0.12 of its total potential returns per unit of risk. Hesai Group American is currently generating about 0.03 per unit of volatility. If you would invest 470.00 in Hesai Group American on August 26, 2024 and sell it today you would earn a total of 4.00 from holding Hesai Group American or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Inc vs. Hesai Group American
Performance |
| Timeline |
| Dana Inc |
| Hesai Group American |
Dana and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and Hesai Group
The main advantage of trading using opposite Dana and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana 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.The idea behind Dana Inc and Hesai Group American 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.| Hesai Group vs. Zhihu Inc ADR | Hesai Group vs. Integrated Drilling Equipment | Hesai Group vs. Cabo Drilling Corp | Hesai Group vs. Tenaris SA ADR |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |