Correlation Between Mobileye Global and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Mobileye Global and Hesai Group 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 Mobileye Global and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileye Global Class and Hesai Group American, you can compare the effects of market volatilities on Mobileye Global and Hesai Group 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 Mobileye Global with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and Hesai Group.
Diversification Opportunities for Mobileye Global and Hesai Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mobileye and Hesai is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Hesai Group American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hesai Group American and Mobileye Global 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 Mobileye Global Class are associated (or correlated) with Hesai Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hesai Group American has no effect on the direction of Mobileye Global i.e., Mobileye Global and Hesai Group go up and down completely randomly.
Pair Corralation between Mobileye Global and Hesai Group
Given the investment horizon of 90 days Mobileye Global is expected to generate 5.51 times less return on investment than Hesai Group. But when comparing it to its historical volatility, Mobileye Global Class is 1.89 times less risky than Hesai Group. It trades about 0.07 of its potential returns per unit of risk. Hesai Group American is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 474.00 in Hesai Group American on October 31, 2024 and sell it today you would earn a total of 1,053 from holding Hesai Group American or generate 222.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobileye Global Class vs. Hesai Group American
Performance |
| Timeline |
| Mobileye Global Class |
| Hesai Group American |
Mobileye Global and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileye Global and Hesai Group
The main advantage of trading using opposite Mobileye Global and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileye Global position performs unexpectedly, Hesai Group 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 Hesai Group will offset losses from the drop in Hesai Group's long position.| Mobileye Global vs. Quantumscape Corp | Mobileye Global vs. Innoviz Technologies | Mobileye Global vs. Aeva Technologies | Mobileye Global vs. Hyliion Holdings Corp |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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