Correlation Analysis Between NIO and Ford Motor

Analyzing existing cross correlation between NIO and Ford Motor Company. You can compare the effects of market volatilities on NIO and Ford Motor 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 NIO with a short position of Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of NIO and Ford Motor.
Horizon     30 Days    Login   to change
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Comparative Performance

NIO  
1313

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in NIO are ranked lower than 13 (%) 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  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In spite of rather uncertain fundamental drivers, Ford Motor may actually be approaching a critical reversion point that can send shares even higher in February 2020.

NIO and Ford Motor Volatility Contrast

 Predicted Return Density 
    
  Returns 

NIO Inc  vs.  Ford Motor Company

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, NIO is expected to generate 9.26 times more return on investment than Ford Motor. However, NIO is 9.26 times more volatile than Ford Motor Company. It trades about 0.19 of its potential returns per unit of risk. Ford Motor Company is currently generating about 0.1 per unit of risk. If you would invest  154.00  in NIO on December 23, 2019 and sell it today you would earn a total of  363.00  from holding NIO or generate 235.71% return on investment over 30 days.

Pair Corralation between NIO and Ford Motor

0.47
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy78.21%
ValuesDaily Returns

Diversification Opportunities for NIO and Ford Motor

NIO Inc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding NIO Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and NIO 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 NIO are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of NIO i.e. NIO and Ford Motor go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.