Correlation Between Hesai Group and Ford
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Ford 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 Ford 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 Ford Motor, you can compare the effects of market volatilities on Hesai Group and Ford 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 Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Ford.
Diversification Opportunities for Hesai Group and Ford
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hesai and Ford is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Hesai Group i.e., Hesai Group and Ford go up and down completely randomly.
Pair Corralation between Hesai Group and Ford
Given the investment horizon of 90 days Hesai Group American is expected to generate 3.43 times more return on investment than Ford. However, Hesai Group is 3.43 times more volatile than Ford Motor. It trades about 0.2 of its potential returns per unit of risk. Ford Motor is currently generating about 0.03 per unit of risk. If you would invest 388.00 in Hesai Group American on September 3, 2024 and sell it today you would earn a total of 430.00 from holding Hesai Group American or generate 110.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Ford Motor
Performance |
| Timeline |
| Hesai Group American |
| Ford Motor |
Hesai Group and Ford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Ford
The main advantage of trading using opposite Hesai Group and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Ford 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 Ford will offset losses from the drop in Ford's long position.| Hesai Group vs. Sapiens International | Hesai Group vs. FactSet Research Systems | Hesai Group vs. ServiceNow | Hesai Group vs. Doubledown Interactive Co |
| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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