Correlation Between Hesai Group and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Lindblad Expeditions 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 Lindblad Expeditions 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 Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Hesai Group and Lindblad Expeditions 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 Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Lindblad Expeditions.
Diversification Opportunities for Hesai Group and Lindblad Expeditions
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hesai and Lindblad is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions 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 Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of Hesai Group i.e., Hesai Group and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Hesai Group and Lindblad Expeditions
Given the investment horizon of 90 days Hesai Group American is expected to generate 1.63 times more return on investment than Lindblad Expeditions. However, Hesai Group is 1.63 times more volatile than Lindblad Expeditions Holdings. It trades about 0.22 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.18 per unit of risk. If you would invest 464.00 in Hesai Group American on August 30, 2024 and sell it today you would earn a total of 222.00 from holding Hesai Group American or generate 47.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hesai Group American vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Hesai Group American |
| Lindblad Expeditions |
Hesai Group and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Lindblad Expeditions
The main advantage of trading using opposite Hesai Group and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.| Hesai Group vs. Lindblad Expeditions Holdings | Hesai Group vs. Merit Medical Systems | Hesai Group vs. United Airlines Holdings | Hesai Group vs. Acco Brands |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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