Correlation Between Ford and Niu Technologies

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

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Can any of the company-specific risk be diversified away by investing in both Ford and Niu Technologies at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Ford and Niu Technologies into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Ford and Niu Technologies

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Very weak diversification

The 3 months correlation between Ford and Niu Technologies is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Niu Technologies in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies and Ford 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 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 Ford i.e. Ford and Niu Technologies go up and down completely randomly.

Pair Corralation between Ford and Niu Technologies

Taking into account the 30 trading days horizon, Ford Motor is expected to under-perform the Niu Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor is 1.25 times less risky than Niu Technologies. The stock trades about -0.04 of its potential returns per unit of risk. The Niu Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  880.00  in Niu Technologies on April 29, 2020 and sell it today you would earn a total of  185.00  from holding Niu Technologies or generate 21.02% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Ford Motor Company  vs.  Niu Technologies

 Performance (%) 
Ford Motor 

Ford Risk-Adjusted Performance

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

Niu Technologies Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Niu Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively conflicting essential indicators, Niu Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ford and Niu Technologies Volatility Contrast

 Predicted Return Density 
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