Correlation Between Hudson Acquisition and Hesai Group

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

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

Diversification Opportunities for Hudson Acquisition and Hesai Group

0.0

Correlation Coefficient

Hudson Acquisition  Hesai Group

Pay attention - limited upside

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

Pair Corralation between Hudson Acquisition and Hesai Group

If you would invest  1,076  in Hesai Group American on October 9, 2024 and sell it today you would earn a total of  400.00  from holding Hesai Group American or generate 37.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hudson Acquisition I  vs.  Hesai Group American

Hudson Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Acquisition I has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Hudson Acquisition is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Hesai Group American

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hesai Group American are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Hesai Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hudson Acquisition and Hesai Group

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

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.