Correlation Between Cooper Stnd and Nio
Can any of the company-specific risk be diversified away by investing in both Cooper Stnd and Nio 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 Cooper Stnd and Nio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Stnd and Nio Class A, you can compare the effects of market volatilities on Cooper Stnd and Nio 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 Cooper Stnd with a short position of Nio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Stnd and Nio.
Diversification Opportunities for Cooper Stnd and Nio
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cooper and Nio is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Stnd and Nio Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nio Class A and Cooper Stnd 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 Cooper Stnd are associated (or correlated) with Nio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nio Class A has no effect on the direction of Cooper Stnd i.e., Cooper Stnd and Nio go up and down completely randomly.
Pair Corralation between Cooper Stnd and Nio
Considering the 90-day investment horizon Cooper Stnd is expected to under-perform the Nio. But the stock apears to be less risky and, when comparing its historical volatility, Cooper Stnd is 1.3 times less risky than Nio. The stock trades about 0.0 of its potential returns per unit of risk. The Nio Class A is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Nio Class A on August 28, 2024 and sell it today you would earn a total of 97.00 from holding Nio Class A or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Stnd vs. Nio Class A
Performance |
| Timeline |
| Cooper Stnd |
| Nio Class A |
Cooper Stnd and Nio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Stnd and Nio
The main advantage of trading using opposite Cooper Stnd and Nio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Stnd position performs unexpectedly, Nio 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 will offset losses from the drop in Nio's long position.| Cooper Stnd vs. Dorman Products | Cooper Stnd vs. Monro Muffler Brake | Cooper Stnd vs. Standard Motor Products | Cooper Stnd vs. Stoneridge |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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