Correlation Between Nio Inc and Ford

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nio Inc and Ford 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 Nio Inc and Ford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nio Inc ADR and Ford Motor, you can compare the effects of market volatilities on Nio Inc and Ford 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 Inc with a short position of Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nio Inc and Ford.

Diversification Opportunities for Nio Inc and Ford

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Nio Inc and Ford is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nio Inc ADR and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Nio Inc 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 Inc ADR are associated (or correlated) with Ford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Nio Inc i.e., Nio Inc and Ford go up and down completely randomly.

Pair Corralation between Nio Inc and Ford

Considering the 90-day investment horizon Nio Inc is expected to generate 7.28 times less return on investment than Ford. In addition to that, Nio Inc is 1.75 times more volatile than Ford Motor. It trades about 0.0 of its total potential returns per unit of risk. Ford Motor is currently generating about 0.05 per unit of volatility. If you would invest  742.00  in Ford Motor on July 7, 2022 and sell it today you would earn a total of  494.00  from holding Ford Motor or generate 66.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nio Inc ADR  vs.  Ford Motor

 Performance (%) 
       Timeline  
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 conflicting performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in November 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Nio Inc Price Channel

Ford Motor 
Ford Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Ford may actually be approaching a critical reversion point that can send shares even higher in November 2022.

Ford Price Channel

Nio Inc and Ford Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nio Inc and Ford

The main advantage of trading using opposite Nio Inc and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nio Inc position performs unexpectedly, Ford 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 Ford will offset losses from the drop in Ford's long position.
Nio Inc vs. Amazon Inc
The idea behind Nio Inc ADR and Ford Motor 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.
Ford vs. Amazon Inc
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go