Correlation Between Hesai Group and Park Ohio
Can any of the company-specific risk be diversified away by investing in both Hesai Group and Park Ohio 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 Park Ohio 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 Park Ohio Holdings, you can compare the effects of market volatilities on Hesai Group and Park Ohio 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 Park Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hesai Group and Park Ohio.
Diversification Opportunities for Hesai Group and Park Ohio
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hesai and Park is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hesai Group American and Park Ohio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Ohio Holdings 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 Park Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Ohio Holdings has no effect on the direction of Hesai Group i.e., Hesai Group and Park Ohio go up and down completely randomly.
Pair Corralation between Hesai Group and Park Ohio
Given the investment horizon of 90 days Hesai Group American is expected to generate 2.14 times more return on investment than Park Ohio. However, Hesai Group is 2.14 times more volatile than Park Ohio Holdings. It trades about 0.1 of its potential returns per unit of risk. Park Ohio Holdings is currently generating about 0.08 per unit of risk. If you would invest 484.00 in Hesai Group American on September 1, 2024 and sell it today you would earn a total of 334.00 from holding Hesai Group American or generate 69.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hesai Group American vs. Park Ohio Holdings
Performance |
| Timeline |
| Hesai Group American |
| Park Ohio Holdings |
Hesai Group and Park Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hesai Group and Park Ohio
The main advantage of trading using opposite Hesai Group and Park Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hesai Group position performs unexpectedly, Park Ohio 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 Park Ohio will offset losses from the drop in Park Ohio's long position.| Hesai Group vs. Ford Motor | Hesai Group vs. General Motors | Hesai Group vs. Goodyear Tire Rubber | Hesai Group vs. Li Auto |
| Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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