Correlation Between Gogoro and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Gogoro 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 Gogoro and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gogoro Inc and Hesai Group American, you can compare the effects of market volatilities on Gogoro 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 Gogoro with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gogoro and Hesai Group.
Diversification Opportunities for Gogoro and Hesai Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gogoro and Hesai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gogoro 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 Gogoro 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 Gogoro 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 Gogoro i.e., Gogoro and Hesai Group go up and down completely randomly.
Pair Corralation between Gogoro and Hesai Group
Considering the 90-day investment horizon Gogoro is expected to generate 11.13 times less return on investment than Hesai Group. But when comparing it to its historical volatility, Gogoro Inc is 1.68 times less risky than Hesai Group. It trades about 0.02 of its potential returns per unit of risk. Hesai Group American is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,559 in Hesai Group American on November 18, 2024 and sell it today you would earn a total of 205.00 from holding Hesai Group American or generate 13.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gogoro Inc vs. Hesai Group American
Performance |
| Timeline |
| Gogoro Inc |
| Hesai Group American |
Gogoro and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gogoro and Hesai Group
The main advantage of trading using opposite Gogoro and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gogoro 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.| Gogoro vs. Motorcar Parts of | Gogoro vs. Stoneridge | Gogoro vs. Superior Industries International | Gogoro vs. Lear Corporation |
| Hesai Group vs. Li Auto | Hesai Group vs. Aptiv PLC | Hesai Group vs. EMCOR Group | Hesai Group vs. MYR Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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