Correlation Between Beam Global and Niu Technologies

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

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

Diversification Opportunities for Beam Global and Niu Technologies

0.35

Correlation Coefficient

Beam Global  Niu Technologies

Weak diversification

The 3 months correlation between Beam and Niu is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Beam Global and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies and Beam Global 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 Beam Global 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 Beam Global i.e., Beam Global and Niu Technologies go up and down completely randomly.

Pair Corralation between Beam Global and Niu Technologies

Given the investment horizon of 90 days Beam Global is expected to generate 1.65 times more return on investment than Niu Technologies. However, Beam Global is 1.65 times more volatile than Niu Technologies. It trades about 0.15 of its potential returns per unit of risk. Niu Technologies is currently generating about 0.03 per unit of risk. If you would invest  143.00  in Beam Global on May 7, 2025 and sell it today you would earn a total of  108.00  from holding Beam Global or generate 75.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Beam Global  vs.  Niu Technologies

Beam Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Beam Global are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Beam Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Niu Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Niu Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, Niu Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Beam Global and Niu Technologies

The main advantage of trading using opposite Beam Global and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beam Global 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.

The idea behind Beam Global and Niu Technologies 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.