Correlation Between GARDNER DENVER and Nio Inc

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Can any of the company-specific risk be diversified away by investing in both GARDNER DENVER and Nio Inc 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 GARDNER DENVER and Nio Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GARDNER DENVER INC and Nio Inc ADR, you can compare the effects of market volatilities on GARDNER DENVER and Nio Inc 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 GARDNER DENVER with a short position of Nio Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GARDNER DENVER and Nio Inc.

Diversification Opportunities for GARDNER DENVER and Nio Inc

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GARDNER and Nio Inc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GARDNER DENVER INC and Nio Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nio Inc ADR and GARDNER DENVER 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 GARDNER DENVER INC are associated (or correlated) with Nio Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nio Inc ADR has no effect on the direction of GARDNER DENVER i.e., GARDNER DENVER and Nio Inc go up and down completely randomly.

Pair Corralation between GARDNER DENVER and Nio Inc

If you would invest  1,753  in Nio Inc ADR on April 3, 2022 and sell it today you would earn a total of  383.00  from holding Nio Inc ADR or generate 21.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

GARDNER DENVER INC  vs.  Nio Inc ADR

 Performance (%) 
      Timeline 
GARDNER DENVER INC 
GARDNER Performance
0 of 100
Over the last 90 days GARDNER DENVER INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, GARDNER DENVER is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Nio Inc ADR 
Nio Inc Performance
0 of 100
Over the last 90 days Nio Inc ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, Nio Inc is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Structure and Payout Changes

Dividend Date
2016-05-02

Nio Inc Price Channel

GARDNER DENVER and Nio Inc Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with GARDNER DENVER and Nio Inc

The main advantage of trading using opposite GARDNER DENVER and Nio Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GARDNER DENVER position performs unexpectedly, Nio Inc 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 Nio Inc will offset losses from the drop in Nio Inc's long position.

GARDNER DENVER INC

Pair trading matchups for GARDNER DENVER

Cyclacel Pharmaceuti vs. GARDNER DENVER
Context Therapeutics vs. GARDNER DENVER
MITIE GROUP vs. GARDNER DENVER
Arca Biopharma vs. GARDNER DENVER
Solo Brands vs. GARDNER DENVER
Sentinelone Inc vs. GARDNER DENVER
Alzamend Neuro vs. GARDNER DENVER
Visa vs. GARDNER DENVER
Alphabet vs. GARDNER DENVER
BP PLC vs. GARDNER DENVER
Liquidia Corp vs. GARDNER DENVER
International Business vs. GARDNER DENVER
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 GARDNER DENVER 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. GARDNER DENVER'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, GARDNER DENVER'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 GARDNER DENVER INC.
The idea behind GARDNER DENVER INC and Nio Inc ADR 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.

Nio Inc ADR

Pair trading matchups for Nio Inc

Vmware vs. Nio Inc
RENEWI PLC vs. Nio Inc
Alphabet vs. Nio Inc
Sentinelone Inc vs. Nio Inc
Liquidia Corp vs. Nio Inc
Seneca Foods vs. Nio Inc
MITIE GROUP vs. Nio Inc
Cyclacel Pharmaceuti vs. Nio Inc
Arca Biopharma vs. Nio Inc
International Business vs. Nio Inc
ATT 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.
Check out your portfolio center. 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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