Correlation Between Hesai Group and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Pekin Life 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 Pekin Life 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 Pekin Life Insurance, you can compare the effects of market volatilities on Hesai Group and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Pekin Life.
Diversification Opportunities for Hesai Group and Pekin Life
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hesai and Pekin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Hesai Group i.e., Hesai Group and Pekin Life go up and down completely randomly.
Pair Corralation between Hesai Group and Pekin Life
Given the investment horizon of 90 days Hesai Group American is expected to generate 11.68 times more return on investment than Pekin Life. However, Hesai Group is 11.68 times more volatile than Pekin Life Insurance. It trades about 0.02 of its potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 907.00 in Hesai Group American on August 31, 2024 and sell it today you would lose (89.00) from holding Hesai Group American or give up 9.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Hesai Group American vs. Pekin Life Insurance
Performance |
| Timeline |
| Hesai Group American |
| Pekin Life Insurance |
Hesai Group and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Pekin Life
The main advantage of trading using opposite Hesai Group and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life's long position.| Hesai Group vs. Proficient Auto Logistics, | Hesai Group vs. Skillful Craftsman Education | Hesai Group vs. Nexstar Broadcasting Group | Hesai Group vs. Bright Scholar Education |
| Pekin Life vs. HUMANA INC | Pekin Life vs. SCOR PK | Pekin Life vs. Aquagold International | Pekin Life vs. Thrivent High Yield |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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