Correlation Between Hesai Group and Linamar
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Linamar 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 Linamar 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 Linamar, you can compare the effects of market volatilities on Hesai Group and Linamar 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 Linamar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Linamar.
Diversification Opportunities for Hesai Group and Linamar
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hesai and Linamar is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Linamar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linamar 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 Linamar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linamar has no effect on the direction of Hesai Group i.e., Hesai Group and Linamar go up and down completely randomly.
Pair Corralation between Hesai Group and Linamar
Given the investment horizon of 90 days Hesai Group American is expected to generate 4.65 times more return on investment than Linamar. However, Hesai Group is 4.65 times more volatile than Linamar. It trades about 0.26 of its potential returns per unit of risk. Linamar is currently generating about 0.08 per unit of risk. If you would invest 1,105 in Hesai Group American on October 20, 2024 and sell it today you would earn a total of 454.00 from holding Hesai Group American or generate 41.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Linamar
Performance |
| Timeline |
| Hesai Group American |
| Linamar |
Hesai Group and Linamar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Linamar
The main advantage of trading using opposite Hesai Group and Linamar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Linamar 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 Linamar will offset losses from the drop in Linamar's long position.| Hesai Group vs. Cabo Drilling Corp | Hesai Group vs. Nabors Industries | Hesai Group vs. AKITA Drilling | Hesai Group vs. Awilco Drilling PLC |
| Linamar vs. Dorman Products | Linamar vs. Standard Motor Products | Linamar vs. Motorcar Parts of | Linamar vs. Douglas Dynamics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world |