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.

Comparative Performance

Ford Motor  

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.

Risk-Adjusted Performance

Over the last 30 days NIO has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough unsteady performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in March 2020. The existing mess may also be a sign of long standing up-swing for the corporation partners.

Ford Motor and NIO Volatility Contrast

 Predicted Return Density 

Ford Motor Company  vs.  NIO Inc

 Performance (%) 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 0.1 times more return on investment than NIO. However, Ford Motor Company is 9.97 times less risky than NIO. It trades about -0.07 of its potential returns per unit of risk. NIO is currently generating about -0.01 per unit of risk. If you would invest  871.00  in Ford Motor Company on January 20, 2020 and sell it today you would lose (65.00)  from holding Ford Motor Company or give up 7.46% of portfolio value over 30 days.

Pair Corralation between Ford Motor and NIO

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Ford Motor and NIO

Ford Motor Company diversification synergy

Good diversification

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.
Check out your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.