Nio Inc Stock Volatility

NIO -  USA Stock  

USD 16.44  0.22  1.32%

Nio Inc ADR has Sharpe Ratio of -0.0307, which conveys that the firm had -0.0307% 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 risk adjusted performance of (0.08), and Mean Deviation of 5.1 to check out the risk estimate we provide.
  
Refresh
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

Somewhat reliable

Chance of Distress

Significantly High

720 Days Economic Sensitivity

Hyperactively responds to market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Nio Inc can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Nio Inc at lower prices. For example, an investor can purchase Nio Inc stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Nio Inc's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

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 2.66 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. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Nio Inc will likely underperform.
3 Months Beta |Analyze Nio Inc ADR Demand Trend
Check current 90 days Nio Inc correlation with market (DOW)

Nio Inc Beta

    
  2.66  
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

    
  6.87  
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

    
  106.77  
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 are near their expiration.

Nio Inc ADR Stock Volatility Analysis

Volatility refers to the frequency at which Nio Inc stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Nio Inc's price changes. Investors will then calculate the volatility of Nio Inc's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Nio Inc's volatility:

Historical Volatility

This type of stock volatility measures Nio Inc's fluctuations based on previous trends. It's commonly used to predict Nio Inc's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Nio Inc's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Nio Inc ADR high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Nio Inc closing price as input.
.

Nio Inc Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 2.6642 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Nio Inc will likely underperform.
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's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Nio Inc stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

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 -3254.17. The daily returns are distributed with a variance of 47.19 and standard deviation of 6.87. The mean deviation of Nio Inc ADR is currently at 5.05. For similar time horizon, the selected benchmark (DOW) has volatility of 1.35
α
Alpha over DOW
-0.0032
β
Beta against DOW2.66
σ
Overall volatility
6.87
Ir
Information ratio -0.04

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 6.8697% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.3408% 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.
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
2022-05-27 CALL at $2.5 is a CALL option contract on Nio Inc's common stock with a strick price of 2.5 expiring on 2022-05-27. The contract was last traded on 2022-05-17 at 09:58:52 for $13.55 and, as of today, has 6 days remaining before the expiration. The option is currently trading at a bid price of $13.9, and an ask price of $14.2. The implied volatility as of the 21st of May is 791.6965.
 Profit 
Share
      Nio Inc Price At Expiration 

Nio Inc Investment Opportunity

Nio Inc ADR has a volatility of 6.87 and is 5.13 times more volatile than DOW. 59  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 higher than 59 () of all global equities and portfolios over the last 90 days. Use Nio Inc ADR to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Nio Inc to be traded at $15.95 in 90 days. . Let's try to break down what Nio Inc's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Nio Inc will likely underperform.

Very weak diversification

The correlation between Nio Inc ADR and DJI is Very weak 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(0.08)
Market Risk Adjusted Performance(0.16)
Mean Deviation5.1
Coefficient Of Variation(1,543)
Standard Deviation6.85
Variance46.94
Information Ratio(0.041562)
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.
SP 500 vs. Nio Inc
Nxp Semiconductors vs. Nio Inc
Palo Alto vs. Nio Inc
Dupont Denemours vs. Nio Inc
International Business vs. Nio Inc
Vmware vs. Nio Inc
Veeco Instrument vs. Nio Inc
Fidelity Info vs. Nio Inc
Microsoft Corp vs. Nio Inc
Servicenow vs. Nio Inc
Zendesk vs. Nio Inc
Ford vs. Nio Inc
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Complementary Tools for Nio Inc Stock analysis

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.
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Positions Ratings
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
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Is Nio Inc's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nio Inc. If investors know Nio Inc will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nio Inc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
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's underlying business (such as a 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.