Correlation Between Harley Davidson and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Harley Davidson 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 Harley Davidson and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harley Davidson and Hesai Group American, you can compare the effects of market volatilities on Harley Davidson 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 Harley Davidson with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harley Davidson and Hesai Group.
Diversification Opportunities for Harley Davidson and Hesai Group
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harley and Hesai is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Harley Davidson 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 Harley Davidson 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 Harley Davidson 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 Harley Davidson i.e., Harley Davidson and Hesai Group go up and down completely randomly.
Pair Corralation between Harley Davidson and Hesai Group
Considering the 90-day investment horizon Harley Davidson is expected to under-perform the Hesai Group. But the stock apears to be less risky and, when comparing its historical volatility, Harley Davidson is 4.19 times less risky than Hesai Group. The stock trades about -0.36 of its potential returns per unit of risk. The 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harley Davidson vs. Hesai Group American
Performance |
| Timeline |
| Harley Davidson |
| Hesai Group American |
Harley Davidson and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harley Davidson and Hesai Group
The main advantage of trading using opposite Harley Davidson and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harley Davidson 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.| Harley Davidson vs. Global Net Lease | Harley Davidson vs. Multi Ways Holdings | Harley Davidson vs. Marfrig Global Foods | Harley Davidson vs. FitLife Brands, Common |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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