Correlation Between Niu Technologies and Volcon

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

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

Diversification Opportunities for Niu Technologies and Volcon

0.16

Correlation Coefficient

Niu Technologies  Volcon

Average diversification

The 3 months correlation between Niu and Volcon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Niu Technologies and Volcon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcon Inc and Niu Technologies 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 Niu Technologies are associated (or correlated) with Volcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcon Inc has no effect on the direction of Niu Technologies i.e., Niu Technologies and Volcon go up and down completely randomly.

Pair Corralation between Niu Technologies and Volcon

Considering the 90-day investment horizon Niu Technologies is expected to generate 25.8 times less return on investment than Volcon. But when comparing it to its historical volatility, Niu Technologies is 11.31 times less risky than Volcon. It trades about 0.06 of its potential returns per unit of risk. Volcon Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  700.00  in Volcon Inc on May 6, 2025 and sell it today you would earn a total of  275.00  from holding Volcon Inc or generate 39.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Niu Technologies  vs.  Volcon Inc

Niu Technologies

Risk-Adjusted Performance

Weak

Over the last 90 days Niu Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Niu Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Volcon Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Volcon Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Volcon displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Niu Technologies and Volcon

The main advantage of trading using opposite Niu Technologies and Volcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niu Technologies position performs unexpectedly, Volcon 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 Volcon will offset losses from the drop in Volcon's long position.

The idea behind Niu Technologies and Volcon Inc 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .