Correlation Between Hesai Group and Innoviz Technologies
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Innoviz Technologies 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 Innoviz Technologies 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 Innoviz Technologies, you can compare the effects of market volatilities on Hesai Group and Innoviz Technologies 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 Innoviz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Innoviz Technologies.
Diversification Opportunities for Hesai Group and Innoviz Technologies
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hesai and Innoviz is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Innoviz Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innoviz Technologies 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 Innoviz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innoviz Technologies has no effect on the direction of Hesai Group i.e., Hesai Group and Innoviz Technologies go up and down completely randomly.
Pair Corralation between Hesai Group and Innoviz Technologies
Given the investment horizon of 90 days Hesai Group American is expected to generate 1.03 times more return on investment than Innoviz Technologies. However, Hesai Group is 1.03 times more volatile than Innoviz Technologies. It trades about 0.2 of its potential returns per unit of risk. Innoviz Technologies is currently generating about 0.14 per unit of risk. If you would invest 474.00 in Hesai Group American on October 31, 2024 and sell it today you would earn a total of 1,053 from holding Hesai Group American or generate 222.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Innoviz Technologies
Performance |
| Timeline |
| Hesai Group American |
| Innoviz Technologies |
Hesai Group and Innoviz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Innoviz Technologies
The main advantage of trading using opposite Hesai Group and Innoviz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Innoviz Technologies 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 Innoviz Technologies will offset losses from the drop in Innoviz Technologies' long position.| Hesai Group vs. Boston Beer | Hesai Group vs. SNDL Inc | Hesai Group vs. Vodka Brands Corp | Hesai Group vs. China Resources Beer |
| Innoviz Technologies vs. Aeye Inc | Innoviz Technologies vs. Luminar Technologies | Innoviz Technologies vs. Hesai Group American | Innoviz Technologies vs. Mobileye Global Class |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |