Correlation Between NIO and DAIMLER AG

By analyzing existing cross correlation between NIO Inc and DAIMLER AG you can compare the effects of market volatilities on NIO and DAIMLER AG 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 DAIMLER AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIO and DAIMLER AG.

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Can any of the company-specific risk be diversified away by investing in both NIO and DAIMLER AG at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing NIO and DAIMLER AG into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for NIO and DAIMLER AG

0.78
Correlation
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Poor diversification

The 3 months correlation between NIO and DAIMLER is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding NIO Inc and DAIMLER AG in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DAIMLER AG 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 Inc are associated (or correlated) with DAIMLER AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAIMLER AG has no effect on the direction of NIO i.e. NIO and DAIMLER AG go up and down completely randomly.

Pair Corralation between NIO and DAIMLER AG

Considering 30-days investment horizon, NIO Inc is expected to generate 1.04 times more return on investment than DAIMLER AG. However, NIO is 1.04 times more volatile than DAIMLER AG. It trades about 0.14 of its potential returns per unit of risk. DAIMLER AG is currently generating about 0.09 per unit of risk. If you would invest  329.00  in NIO Inc on May 6, 2020 and sell it today you would earn a total of  231.00  from holding NIO Inc or generate 70.21% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

NIO Inc  vs.  DAIMLER AG

 Performance (%) 
      Timeline 
NIO Inc 
99

NIO Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in NIO Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Allthough quite unfluctuating forward indicators, NIO disclosed solid returns over the last few months and may actually be approaching a breakup point.
DAIMLER AG 
55

DAIMLER AG Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DAIMLER AG are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of rather unfluctuating fundamental drivers, DAIMLER AG exhibited solid returns over the last few months and may actually be approaching a breakup point.

NIO and DAIMLER AG Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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