Correlation Between Mercedes Benz and Niu Technologies
Can any of the company-specific risk be diversified away by investing in both Mercedes Benz and Niu Technologies 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 Mercedes Benz and Niu Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group and Niu Technologies, you can compare the effects of market volatilities on Mercedes Benz and Niu Technologies 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 Mercedes Benz with a short position of Niu Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes Benz and Niu Technologies.
Diversification Opportunities for Mercedes Benz and Niu Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercedes and Niu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies and Mercedes Benz 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 Mercedes Benz Group are associated (or correlated) with Niu Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niu Technologies has no effect on the direction of Mercedes Benz i.e., Mercedes Benz and Niu Technologies go up and down completely randomly.
Pair Corralation between Mercedes Benz and Niu Technologies
If you would invest (100.00) in Mercedes Benz Group on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Mercedes Benz Group or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Mercedes Benz Group vs. Niu Technologies
Performance |
Timeline |
Mercedes Benz Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Niu Technologies |
Mercedes Benz and Niu Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mercedes Benz and Niu Technologies
The main advantage of trading using opposite Mercedes Benz and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes Benz position performs unexpectedly, Niu Technologies 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 Niu Technologies will offset losses from the drop in Niu Technologies' long position.Mercedes Benz vs. Direct Line Insurance | Mercedes Benz vs. VirnetX Holding Corp | Mercedes Benz vs. Vacasa Inc | Mercedes Benz vs. Palomar Holdings |
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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 the Commodity Directory module to find actively traded commodities issued by global exchanges.
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