Correlation Between Hesai Group and Foresight Autonomous
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Foresight Autonomous 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 Foresight Autonomous 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 Foresight Autonomous Holdings, you can compare the effects of market volatilities on Hesai Group and Foresight Autonomous 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 Foresight Autonomous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Foresight Autonomous.
Diversification Opportunities for Hesai Group and Foresight Autonomous
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hesai and Foresight is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Foresight Autonomous Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Autonomous 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 Foresight Autonomous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Autonomous has no effect on the direction of Hesai Group i.e., Hesai Group and Foresight Autonomous go up and down completely randomly.
Pair Corralation between Hesai Group and Foresight Autonomous
Given the investment horizon of 90 days Hesai Group American is expected to generate 1.03 times more return on investment than Foresight Autonomous. However, Hesai Group is 1.03 times more volatile than Foresight Autonomous Holdings. It trades about 0.01 of its potential returns per unit of risk. Foresight Autonomous Holdings is currently generating about -0.04 per unit of risk. If you would invest 478.00 in Hesai Group American on August 28, 2024 and sell it today you would lose (3.00) from holding Hesai Group American or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Foresight Autonomous Holdings
Performance |
| Timeline |
| Hesai Group American |
| Foresight Autonomous |
Hesai Group and Foresight Autonomous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Foresight Autonomous
The main advantage of trading using opposite Hesai Group and Foresight Autonomous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Foresight Autonomous 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 Foresight Autonomous will offset losses from the drop in Foresight Autonomous' long position.| Hesai Group vs. Uber Technologies | Hesai Group vs. Nomura Holdings ADR | Hesai Group vs. Western Acquisition Ventures | Hesai Group vs. Citizens Bancorp Investment |
| Foresight Autonomous vs. Aeva Technologies | Foresight Autonomous vs. Luminar Technologies | Foresight Autonomous vs. Hesai Group American | Foresight Autonomous vs. Aeye Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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