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Correlation Between DAIMLER AG and NIO

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

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Diversification Opportunities for DAIMLER AG and NIO

DAIMLER AG diversification synergy
-0.73
<div class='circular--portrait-small' style='background:#FCD202;color: white;font-size:1.1em;padding-top: 12px;;'>DDA</div>
<div class='circular--portrait-small' style='background:#0D8ECF;color: white;font-size:1.1em;padding-top: 12px;;'>NIO</div>

Pay attention - limited upside

The 3 months correlation between DAIMLER and NIO is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding DAIMLER AG and NIO Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIO and DAIMLER AG 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 DAIMLER AG 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 DAIMLER AG i.e. DAIMLER AG and NIO go up and down completely randomly.

Pair Corralation between DAIMLER AG and NIO

Assuming 30 trading days horizon, DAIMLER AG is expected to under-perform the NIO. But the otc stock apears to be less risky and, when comparing its historical volatility, DAIMLER AG is 3.7 times less risky than NIO. The otc stock trades about -0.11 of its potential returns per unit of risk. The NIO is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  205.00  in NIO on January 22, 2020 and sell it today you would earn a total of  221.00  from holding NIO or generate 107.8% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

DAIMLER AG  vs.  NIO Inc

 Performance (%) 
    
  Timeline 
DAIMLER AG 
00

Risk-Adjusted Performance

Over the last 30 days DAIMLER AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady 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 
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in NIO are ranked lower than 11 (%) 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.

DAIMLER AG and NIO Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.