Correlation Between Niu Technologies and IShares MSCI

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Can any of the company-specific risk be diversified away by investing in both Niu Technologies and IShares MSCI 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 IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niu Technologies and IShares MSCI USA, you can compare the effects of market volatilities on Niu Technologies and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niu Technologies and IShares MSCI.

Diversification Opportunities for Niu Technologies and IShares MSCI

-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Niu and IShares is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Niu Technologies and IShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares MSCI USA 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares MSCI USA has no effect on the direction of Niu Technologies i.e., Niu Technologies and IShares MSCI go up and down completely randomly.

Pair Corralation between Niu Technologies and IShares MSCI

Considering the 90-day investment horizon Niu Technologies is expected to under-perform the IShares MSCI. In addition to that, Niu Technologies is 4.51 times more volatile than IShares MSCI USA. It trades about -0.08 of its total potential returns per unit of risk. IShares MSCI USA is currently generating about 0.25 per unit of volatility. If you would invest  6,064  in IShares MSCI USA on December 29, 2023 and sell it today you would earn a total of  268.00  from holding IShares MSCI USA or generate 4.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Niu Technologies  vs.  IShares MSCI USA

 Performance 
       Timeline  
Niu Technologies 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very 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 fragile performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
IShares MSCI USA 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in IShares MSCI USA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, IShares MSCI may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Niu Technologies and IShares MSCI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Niu Technologies and IShares MSCI

The main advantage of trading using opposite Niu Technologies and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niu Technologies position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.
The idea behind Niu Technologies and IShares MSCI USA 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

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