Correlation Between Volcon and Hesai Group
Can any of the company-specific risk be diversified away by investing in both Volcon 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 Volcon and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volcon Inc and Hesai Group American, you can compare the effects of market volatilities on Volcon 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 Volcon with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volcon and Hesai Group.
Diversification Opportunities for Volcon and Hesai Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Volcon and Hesai is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Volcon Inc 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 Volcon 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 Volcon Inc 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 Volcon i.e., Volcon and Hesai Group go up and down completely randomly.
Pair Corralation between Volcon and Hesai Group
Given the investment horizon of 90 days Volcon Inc is expected to under-perform the Hesai Group. But the stock apears to be less risky and, when comparing its historical volatility, Volcon Inc is 5.21 times less risky than Hesai Group. The stock trades about -0.18 of its potential returns per unit of risk. The Hesai Group American is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Hesai Group American on August 23, 2024 and sell it today you would earn a total of 461.00 from holding Hesai Group American or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.93% |
| Values | Daily Returns |
Volcon Inc vs. Hesai Group American
Performance |
| Timeline |
| Volcon Inc |
| Hesai Group American |
Volcon and Hesai Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volcon and Hesai Group
The main advantage of trading using opposite Volcon and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volcon 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.The idea behind Volcon Inc and Hesai Group American pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |