Correlation Between Allego and Hesai Group

Can any of the company-specific risk be diversified away by investing in both Allego 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 Allego and Hesai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allego Inc and Hesai Group American, you can compare the effects of market volatilities on Allego 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 Allego with a short position of Hesai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allego and Hesai Group.

Diversification Opportunities for Allego and Hesai Group

0.0

Correlation Coefficient

Allego  Hesai Group

Pay attention - limited upside

The 3 months correlation between Allego and Hesai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allego 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 Allego 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 Allego 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 Allego i.e., Allego and Hesai Group go up and down completely randomly.

Pair Corralation between Allego and Hesai Group

If you would invest  1,470  in Hesai Group American on December 28, 2024 and sell it today you would earn a total of  50.00  from holding Hesai Group American or generate 3.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Allego Inc  vs.  Hesai Group American

Allego Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allego Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Allego is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hesai Group American

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hesai Group American are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Hesai Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Allego and Hesai Group

The main advantage of trading using opposite Allego and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allego 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 Allego 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.