Correlation Between Fiat Chrysler and Niu Technologies
Can any of the company-specific risk be diversified away by investing in both Fiat Chrysler and Niu Technologies 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 Fiat Chrysler and Niu Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiat Chrysler Automobiles and Niu Technologies, you can compare the effects of market volatilities on Fiat Chrysler and Niu Technologies 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 Fiat Chrysler with a short position of Niu Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiat Chrysler and Niu Technologies.
Diversification Opportunities for Fiat Chrysler and Niu Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fiat and Niu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fiat Chrysler Automobiles and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies and Fiat Chrysler 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 Fiat Chrysler Automobiles are associated (or correlated) with Niu Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niu Technologies has no effect on the direction of Fiat Chrysler i.e., Fiat Chrysler and Niu Technologies go up and down completely randomly.
Pair Corralation between Fiat Chrysler and Niu Technologies
If you would invest 174.00 in Niu Technologies on January 21, 2024 and sell it today you would earn a total of 18.00 from holding Niu Technologies or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fiat Chrysler Automobiles vs. Niu Technologies
Performance |
| Timeline |
| Fiat Chrysler Automobiles |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Niu Technologies |
Fiat Chrysler and Niu Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiat Chrysler and Niu Technologies
The main advantage of trading using opposite Fiat Chrysler and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiat Chrysler position performs unexpectedly, Niu Technologies 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 Niu Technologies will offset losses from the drop in Niu Technologies' long position.| Fiat Chrysler vs. Ecolab Inc | Fiat Chrysler vs. The Mosaic | Fiat Chrysler vs. Yuexiu Transport Infrastructure | Fiat Chrysler vs. Luxfer Holdings PLC |
| Niu Technologies vs. Ford Motor | Niu Technologies vs. General Motors | Niu Technologies vs. Goodyear Tire Rubber | Niu Technologies vs. Li AutoInc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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