Correlation Between Hesai Group and Cimpress
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Cimpress 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 Hesai Group and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hesai Group American and Cimpress NV, you can compare the effects of market volatilities on Hesai Group and Cimpress 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 Hesai Group with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Cimpress.
Diversification Opportunities for Hesai Group and Cimpress
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hesai and Cimpress is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Hesai Group 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 Hesai Group American are associated (or correlated) with Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Hesai Group i.e., Hesai Group and Cimpress go up and down completely randomly.
Pair Corralation between Hesai Group and Cimpress
Given the investment horizon of 90 days Hesai Group American is expected to generate 2.74 times more return on investment than Cimpress. However, Hesai Group is 2.74 times more volatile than Cimpress NV. It trades about 0.18 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.32 per unit of risk. If you would invest 1,353 in Hesai Group American on November 9, 2024 and sell it today you would earn a total of 328.00 from holding Hesai Group American or generate 24.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Cimpress NV
Performance |
| Timeline |
| Hesai Group American |
| Cimpress NV |
Hesai Group and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Cimpress
The main advantage of trading using opposite Hesai Group and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| Hesai Group vs. Sphere Entertainment Co | Hesai Group vs. Weibo Corp | Hesai Group vs. Cheche Group Class | Hesai Group vs. Sea |
| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |