Correlation Between Inhibrx and Hesai Group

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

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

Diversification Opportunities for Inhibrx and Hesai Group

-0.25

Correlation Coefficient

Inhibrx  Hesai Group

Very good diversification

The 3 months correlation between Inhibrx and Hesai is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx 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 Inhibrx 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 Inhibrx 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 Inhibrx i.e., Inhibrx and Hesai Group go up and down completely randomly.

Pair Corralation between Inhibrx and Hesai Group

Given the investment horizon of 90 days Inhibrx is expected to generate 68.08 times less return on investment than Hesai Group. But when comparing it to its historical volatility, Inhibrx is 10.31 times less risky than Hesai Group. It trades about 0.01 of its potential returns per unit of risk. Hesai Group American is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Hesai Group American on September 14, 2024 and sell it today you would earn a total of  1,105  from holding Hesai Group American or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.94%
Values	Daily Returns

Inhibrx  vs.  Hesai Group American

Inhibrx

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inhibrx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Hesai Group American

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hesai Group American are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Hesai Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inhibrx and Hesai Group

The main advantage of trading using opposite Inhibrx and Hesai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx 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 Inhibrx 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.