Correlation Between Hesai Group and Holley
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Holley 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 Holley 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 Holley Inc, you can compare the effects of market volatilities on Hesai Group and Holley 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 Holley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Holley.
Diversification Opportunities for Hesai Group and Holley
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hesai and Holley is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Holley Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holley Inc 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 Holley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holley Inc has no effect on the direction of Hesai Group i.e., Hesai Group and Holley go up and down completely randomly.
Pair Corralation between Hesai Group and Holley
Given the investment horizon of 90 days Hesai Group American is expected to generate 10.18 times more return on investment than Holley. However, Hesai Group is 10.18 times more volatile than Holley Inc. It trades about 0.04 of its potential returns per unit of risk. Holley Inc is currently generating about 0.02 per unit of risk. If you would invest 0.00 in Hesai Group American on August 26, 2024 and sell it today you would earn a total of 474.00 from holding Hesai Group American or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.15% |
| Values | Daily Returns |
Hesai Group American vs. Holley Inc
Performance |
| Timeline |
| Hesai Group American |
| Holley Inc |
Hesai Group and Holley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Holley
The main advantage of trading using opposite Hesai Group and Holley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Holley 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 Holley will offset losses from the drop in Holley's long position.| Hesai Group vs. Zhihu Inc ADR | Hesai Group vs. Integrated Drilling Equipment | Hesai Group vs. Cabo Drilling Corp | Hesai Group vs. Tenaris SA ADR |
| Holley vs. Dorman Products | Holley vs. Monro Muffler Brake | Holley vs. Standard Motor Products | Holley vs. Stoneridge |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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