Correlation Analysis Between NIO and DOW

This module allows you to analyze existing cross correlation between NIO and DOW. You can compare the effects of market volatilities on NIO and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of NIO and DOW.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

NIO Inc  vs.  DOW

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, NIO is expected to under-perform the DOW. In addition to that, NIO is 9.63 times more volatile than DOW. It trades about -0.06 of its total potential returns per unit of risk. DOW is currently generating about -0.03 per unit of volatility. If you would invest  2,733,563  in DOW on September 14, 2019 and sell it today you would lose (54,827)  from holding DOW or give up 2.01% of portfolio value over 30 days.

Pair Corralation between NIO and DOW

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for NIO and DOW

NIO Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding NIO Inc and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW 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 DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of NIO i.e. NIO and DOW go up and down completely randomly.
See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.