Correlation Between Hesai Group and NGK Spark
Can any of the company-specific risk be diversified away by investing in both Hesai Group and NGK Spark 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 NGK Spark 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 NGK Spark Plug, you can compare the effects of market volatilities on Hesai Group and NGK Spark 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 NGK Spark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and NGK Spark.
Diversification Opportunities for Hesai Group and NGK Spark
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hesai and NGK is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and NGK Spark Plug in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGK Spark Plug 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 NGK Spark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGK Spark Plug has no effect on the direction of Hesai Group i.e., Hesai Group and NGK Spark go up and down completely randomly.
Pair Corralation between Hesai Group and NGK Spark
If you would invest 464.00 in Hesai Group American on August 30, 2024 and sell it today you would earn a total of 271.00 from holding Hesai Group American or generate 58.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hesai Group American vs. NGK Spark Plug
Performance |
| Timeline |
| Hesai Group American |
| NGK Spark Plug |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hesai Group and NGK Spark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and NGK Spark
The main advantage of trading using opposite Hesai Group and NGK Spark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, NGK Spark 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 NGK Spark will offset losses from the drop in NGK Spark's long position.| Hesai Group vs. Park Ohio Holdings | Hesai Group vs. Datadog | Hesai Group vs. CECO Environmental Corp | Hesai Group vs. Nextplat Corp |
| NGK Spark vs. DENSO | NGK Spark vs. Bridgestone Corp ADR | NGK Spark vs. American Axle Manufacturing | NGK Spark vs. Dana Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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