Correlation Between Hesai Group and Luminar Technologies
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Luminar 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 Luminar 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 Luminar Technologies, you can compare the effects of market volatilities on Hesai Group and Luminar 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 Luminar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Luminar Technologies.
Diversification Opportunities for Hesai Group and Luminar Technologies
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hesai and Luminar is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Luminar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luminar 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 Luminar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luminar Technologies has no effect on the direction of Hesai Group i.e., Hesai Group and Luminar Technologies go up and down completely randomly.
Pair Corralation between Hesai Group and Luminar Technologies
Given the investment horizon of 90 days Hesai Group American is expected to generate 1.15 times more return on investment than Luminar Technologies. However, Hesai Group is 1.15 times more volatile than Luminar Technologies. It trades about 0.2 of its potential returns per unit of risk. Luminar Technologies is currently generating about -0.1 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Luminar Technologies
Performance |
| Timeline |
| Hesai Group American |
| Luminar Technologies |
Hesai Group and Luminar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Luminar Technologies
The main advantage of trading using opposite Hesai Group and Luminar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Luminar 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 Luminar Technologies will offset losses from the drop in Luminar 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 |
| Luminar Technologies vs. Mobileye Global Class | Luminar Technologies vs. Hyliion Holdings Corp | Luminar Technologies vs. Aeva Technologies | Luminar Technologies vs. Innoviz Technologies |
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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