Correlation Between Niu Technologies and NWTN
Can any of the company-specific risk be diversified away by investing in both Niu Technologies and NWTN 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 Niu Technologies and NWTN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niu Technologies and NWTN Class B, you can compare the effects of market volatilities on Niu Technologies and NWTN 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 Niu Technologies with a short position of NWTN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niu Technologies and NWTN.
Diversification Opportunities for Niu Technologies and NWTN
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Niu and NWTN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Niu Technologies and NWTN Class B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWTN Class B and Niu Technologies 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 Niu Technologies are associated (or correlated) with NWTN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWTN Class B has no effect on the direction of Niu Technologies i.e., Niu Technologies and NWTN go up and down completely randomly.
Pair Corralation between Niu Technologies and NWTN
Considering the 90-day investment horizon Niu Technologies is expected to generate 0.44 times more return on investment than NWTN. However, Niu Technologies is 2.26 times less risky than NWTN. It trades about 0.0 of its potential returns per unit of risk. NWTN Class B is currently generating about -0.04 per unit of risk. If you would invest 207.00 in Niu Technologies on August 24, 2024 and sell it today you would lose (27.00) from holding Niu Technologies or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Niu Technologies vs. NWTN Class B
Performance |
| Timeline |
| Niu Technologies |
| NWTN Class B |
Niu Technologies and NWTN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niu Technologies and NWTN
The main advantage of trading using opposite Niu Technologies and NWTN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niu Technologies position performs unexpectedly, NWTN 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 NWTN will offset losses from the drop in NWTN's long position.| Niu Technologies vs. Xpeng Inc | Niu Technologies vs. Nio Class A | Niu Technologies vs. Lucid Group | Niu Technologies vs. BYD Co Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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