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Correlation Between Ford Motor and NIO

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

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Diversification Opportunities for Ford Motor and NIO

Ford Motor Company diversification synergy
-0.15
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<div class='circular--portrait-small' style='background:#0D8ECF;color: white;font-size:1.1em;padding-top: 12px;;'>NIO</div>

Good diversification

The 3 months correlation between Ford and NIO is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and NIO Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIO and Ford Motor 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 Ford Motor Company 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 Ford Motor i.e. Ford Motor and NIO go up and down completely randomly.

Pair Corralation between Ford Motor and NIO

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the NIO. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor Company is 5.88 times less risky than NIO. The 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 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ford Motor Company  vs.  NIO Inc

 Performance (%) 
    
  Timeline 
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 latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains 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.

Ford Motor and NIO Volatility Contrast

 Predicted Return Density 
    
  Returns 
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