Nio Inc Stock Volatility

NIO -  USA Stock  

USD 37.71  1.43  3.94%

Nio Inc ADR has Sharpe Ratio of -0.0514, which conveys that the firm had -0.0514% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Nio Inc exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Nio Inc ADR mean deviation of 2.41, and Risk Adjusted Performance of (0.035311) to check out the risk estimate we provide.

Nio Inc Volatility 

 
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Nio Inc Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Nio Inc daily returns, and it is calculated using variance and standard deviation. We also use Nio Inc's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Nio Inc volatility.

720 Days Market Risk

Very steady

Chance of Distress

Very High

720 Days Economic Sensitivity

Almost mirrors the market

Nio Inc Market Sensitivity And Downside Risk

Nio Inc's beta coefficient measures the volatility of Nio Inc stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Nio Inc stock's returns against your selected market. In other words, Nio Inc's beta of 0.97 provides an investor with an approximation of how much risk Nio Inc stock can potentially add to one of your existing portfolios.
Let's try to break down what Nio Inc's beta means in this case. Nio Inc returns are very sensitive to returns on the market. As the market goes up or down, Nio Inc is expected to follow.
3 Months Beta |Analyze Nio Inc ADR Demand Trend
Check current 90 days Nio Inc correlation with market (DOW)

Nio Inc Beta

    
  0.97  
Nio Inc standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  3.19  
It is essential to understand the difference between upside risk (as represented by Nio Inc's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Nio Inc stock's daily returns or price. Since the actual investment returns on holding a position in Nio Inc stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Nio Inc.

Nio Inc Implied Volatility

    
  51.02  
Nio Inc's implied volatility exposes the market's sentiment of Nio Inc ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Nio Inc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Nio Inc stock will not fluctuate a lot when Nio Inc's options near their expiration.

Nio Inc ADR Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of Nio Inc ADR price series. View also all equity analysis or get more info about median price price transform indicator.

Nio Inc Projected Return Density Against Market

Considering the 90-day investment horizon Nio Inc has a beta of 0.9728 . This indicates Nio Inc ADR market returns are very sensitive to returns on the market. As the market goes up or down, Nio Inc is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Nio Inc or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Nio Inc stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Nio Inc stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Nio Inc ADR is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Nio Inc Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Nio Inc or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Nio Inc stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Nio Inc stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Considering the 90-day investment horizon the coefficient of variation of Nio Inc is -1945.51. The daily returns are distributed with a variance of 10.15 and standard deviation of 3.19. The mean deviation of Nio Inc ADR is currently at 2.4. For similar time horizon, the selected benchmark (DOW) has volatility of 0.79
α
Alpha over DOW
-0.19
β
Beta against DOW0.97
σ
Overall volatility
3.19
Ir
Information ratio -0.06

Nio Inc Stock Return Volatility

Nio Inc historical daily return volatility represents how much Nio Inc stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 3.1859% on return distribution over 90 days investment horizon. By contrast, DOW inherits 0.7407% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Nio Inc Volatility

Volatility is a rate at which the price of Nio Inc or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Nio Inc may increase or decrease. In other words, similar to Nio Inc's beta indicator, it measures the risk of Nio Inc and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nio Inc fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Market Capitalization76 B82 B
NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. NIO Inc. was founded in 2014 and is headquartered in Shanghai, China. Nio Inc operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 7763 people.

Nearest Nio Inc long CALL Option Payoff at Expiration

Nio Inc's implied volatility is one of the determining factors in the pricing options written on Nio Inc ADR. Implied volatility approximates the future value of Nio Incusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Nio Inc ADR over a specific time period.
View All Nio Inc options
2021-10-22 CALL at $18.0 is a CALL option contract on Nio Inc's common stock with a strick price of 18.0 expiring on 2021-10-22. The contract was last traded on 2021-10-14 at 14:24:06 for $18.35 and, as of today, has 6 days remaining before the expiration. The option is currently trading at a bid price of $19.6, and an ask price of $20.1. The implied volatility as of the 16th of October 2021 is 292.744.
 Profit 
Share
      Nio Inc Price At Expiration 

Nio Inc Investment Opportunity

Nio Inc ADR has a volatility of 3.19 and is 4.31 times more volatile than DOW. 27  of all equities and portfolios are less risky than Nio Inc. Compared to the overall equity markets, volatility of historical daily returns of Nio Inc ADR is lower than 27 () of all global equities and portfolios over the last 90 days. Use Nio Inc ADR to enhance returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Nio Inc to be traded at $45.25 in 90 days. . Let's try to break down what Nio Inc's beta means in this case. Nio Inc returns are very sensitive to returns on the market. As the market goes up or down, Nio Inc is expected to follow.

Modest diversification

The correlation between Nio Inc ADR and DJI is Modest diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nio Inc ADR and DJI in the same portfolio assuming nothing else is changed.

Nio Inc Additional Risk Indicators

The analysis of Nio Inc's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Nio Inc's investment and either accepting that risk or mitigating it. Along with some common measures of Nio Inc stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance(0.035311)
Market Risk Adjusted Performance(0.18)
Mean Deviation2.41
Coefficient Of Variation(1,842)
Standard Deviation3.17
Variance10.08
Information Ratio(0.06)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Nio Inc Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Nio Inc as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Nio Inc's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Nio Inc's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Nio Inc ADR.
Additionally, see Stocks Correlation. Note that the Nio Inc ADR information on this page should be used as a complementary analysis to other Nio Inc's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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When running Nio Inc ADR price analysis, check to measure Nio Inc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nio Inc is operating at the current time. Most of Nio Inc's value examination focuses on studying past and present price action to predict the probability of Nio Inc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nio Inc's price. Additionally, you may evaluate how the addition of Nio Inc to your portfolios can decrease your overall portfolio volatility.
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The market value of Nio Inc ADR is measured differently than its book value, which is the value of Nio Inc that is recorded on the company's balance sheet. Investors also form their own opinion of Nio Inc's value that differs from its market value or its book value, called intrinsic value, which is Nio Inc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nio Inc's market value can be influenced by many factors that don't directly affect Nio Inc ADR underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nio Inc's value and its price as these two are different measures arrived at by different means. Investors typically determine Nio Inc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nio Inc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.