Correlation Between Nio and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Nio 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 Nio and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nio Class A and Hesai Group American, you can compare the effects of market volatilities on Nio 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 Nio with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nio and Hesai Group.
Diversification Opportunities for Nio and Hesai Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nio and Hesai is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nio Class A 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 Nio 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 Nio Class A 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 Nio i.e., Nio and Hesai Group go up and down completely randomly.
Pair Corralation between Nio and Hesai Group
Considering the 90-day investment horizon Nio Class A is expected to under-perform the Hesai Group. In addition to that, Nio is 1.13 times more volatile than Hesai Group American. It trades about -0.08 of its total potential returns per unit of risk. Hesai Group American is currently generating about -0.03 per unit of volatility. If you would invest 480.00 in Hesai Group American on August 23, 2024 and sell it today you would lose (19.00) from holding Hesai Group American or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nio Class A vs. Hesai Group American
Performance |
| Timeline |
| Nio Class A |
| Hesai Group American |
Nio and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nio and Hesai Group
The main advantage of trading using opposite Nio and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nio 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.| Nio vs. Lucid Group | Nio vs. Rivian Automotive | Nio vs. Polestar Automotive Holding | Nio vs. Mullen Automotive |
| Hesai Group vs. Garrett Motion | Hesai Group vs. Magna International | Hesai Group vs. Miller Industries | Hesai Group vs. Modine Manufacturing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |