Correlation Between Marketing Worldwide and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Marketing Worldwide 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 Marketing Worldwide and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marketing Worldwide and Hesai Group American, you can compare the effects of market volatilities on Marketing Worldwide 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 Marketing Worldwide with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marketing Worldwide and Hesai Group.
Diversification Opportunities for Marketing Worldwide and Hesai Group
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marketing and Hesai is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Marketing Worldwide 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 Marketing Worldwide 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 Marketing Worldwide 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 Marketing Worldwide i.e., Marketing Worldwide and Hesai Group go up and down completely randomly.
Pair Corralation between Marketing Worldwide and Hesai Group
Given the investment horizon of 90 days Marketing Worldwide is expected to generate 5.1 times more return on investment than Hesai Group. However, Marketing Worldwide is 5.1 times more volatile than Hesai Group American. It trades about 0.22 of its potential returns per unit of risk. Hesai Group American is currently generating about 0.23 per unit of risk. If you would invest 0.01 in Marketing Worldwide on November 28, 2024 and sell it today you would earn a total of 0.01 from holding Marketing Worldwide or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Marketing Worldwide vs. Hesai Group American
Performance |
| Timeline |
| Marketing Worldwide |
| Hesai Group American |
Marketing Worldwide and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marketing Worldwide and Hesai Group
The main advantage of trading using opposite Marketing Worldwide and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marketing Worldwide 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.| Marketing Worldwide vs. Continental Aktiengesellschaft | Marketing Worldwide vs. ECARX Holdings Warrants | Marketing Worldwide vs. Service Team | Marketing Worldwide vs. Compagnie Gnrale des |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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