Correlation Between Nio and Stingray

Can any of the company-specific risk be diversified away by investing in both Nio and Stingray 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 and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nio Class A and Stingray Group, you can compare the effects of market volatilities on Nio and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nio and Stingray.

Diversification Opportunities for Nio and Stingray

0.44

Correlation Coefficient

Nio  Stingray

Very weak diversification

The 3 months correlation between Nio and Stingray is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nio Class A and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Class A are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Nio i.e., Nio and Stingray go up and down completely randomly.

Pair Corralation between Nio and Stingray

Considering the 90-day investment horizon Nio Class A is expected to under-perform the Stingray. In addition to that, Nio is 1.94 times more volatile than Stingray Group. It trades about -0.04 of its total potential returns per unit of risk. Stingray Group is currently generating about 0.16 per unit of volatility. If you would invest  512.00  in Stingray Group on December 28, 2024 and sell it today you would earn a total of  122.00  from holding Stingray Group or generate 23.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Nio Class A  vs.  Stingray Group

Nio Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nio Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Stingray Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stingray Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Stingray reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nio and Stingray

The main advantage of trading using opposite Nio and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nio position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.

The idea behind Nio Class A and Stingray Group 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.