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Correlation Between NIO and Ford Motor

Analyzing existing cross correlation between NIO and Ford Motor Company. You can compare the effects of market volatilities on NIO and Ford Motor 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 NIO with a short position of Ford Motor. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIO and Ford Motor.

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Diversification Opportunities for NIO and Ford Motor

NIO Inc diversification synergy
-0.26
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Very good diversification

The 3 months correlation between NIO and Ford Motor is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NIO Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and NIO 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 NIO are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of NIO i.e. NIO and Ford Motor go up and down completely randomly.

Pair Corralation between NIO and Ford Motor

Considering 30-days investment horizon, NIO is expected to generate 5.42 times more return on investment than Ford Motor. However, NIO is 5.42 times more volatile than Ford Motor Company. It trades about 0.15 of its potential returns per unit of risk. Ford Motor Company is currently generating about -0.22 per unit of risk. If you would invest  227.00  in NIO on January 28, 2020 and sell it today you would earn a total of  207.00  from holding NIO or generate 91.19% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

NIO Inc  vs.  Ford Motor Company

 Performance (%) 
    
  Timeline 
NIO 
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in NIO are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. Allthough quite uncertain forward indicators, NIO disclosed solid returns over the last few months and may actually be approaching a breakup point.
Ford Motor 
00

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in March 2020. The ongoing tumult may also be a sign of longer-term up-swing for the firm shareholders.

NIO and Ford Motor Volatility Contrast

 Predicted Return Density 
    
  Returns 
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