Correlation Analysis Between Ford Motor and NIO

Analyzing existing cross correlation between Ford Motor Company and NIO. You can compare the effects of market volatilities on Ford Motor and NIO 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 Ford Motor with a short position of NIO. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and NIO.
Horizon     30 Days    Login   to change
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Comparative Performance

Ford Motor  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
NIO  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in NIO are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Allthough quite unsteady forward indicators, NIO disclosed solid returns over the last few months and may actually be approaching a breakup point.

Ford Motor and NIO Volatility Contrast

 Predicted Return Density 
    
  Returns 

Ford Motor Company  vs.  NIO Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor is expected to generate 24.77 times less return on investment than NIO. But when comparing it to its historical volatility, Ford Motor Company is 9.53 times less risky than NIO. It trades about 0.07 of its potential returns per unit of risk. NIO is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  148.00  in NIO on December 24, 2019 and sell it today you would earn a total of  344.00  from holding NIO or generate 232.43% return on investment over 30 days.

Pair Corralation between Ford Motor and NIO

0.46
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy78.48%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and NIO

Ford Motor Company diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and NIO Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIO and Ford Motor 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 Ford Motor Company are associated (or correlated) with NIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIO has no effect on the direction of Ford Motor i.e. Ford Motor and NIO go up and down completely randomly.
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