Correlation Between Nio and Cypress Development
Can any of the company-specific risk be diversified away by investing in both Nio and Cypress Development 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 Cypress Development 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 Cypress Development Corp, you can compare the effects of market volatilities on Nio and Cypress Development 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 Cypress Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nio and Cypress Development.
Diversification Opportunities for Nio and Cypress Development
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nio and Cypress is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nio Class A and Cypress Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cypress Development Corp 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 Cypress Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cypress Development Corp has no effect on the direction of Nio i.e., Nio and Cypress Development go up and down completely randomly.
Pair Corralation between Nio and Cypress Development
Considering the 90-day investment horizon Nio Class A is expected to generate 1.08 times more return on investment than Cypress Development. However, Nio is 1.08 times more volatile than Cypress Development Corp. It trades about 0.15 of its potential returns per unit of risk. Cypress Development Corp is currently generating about -0.05 per unit of risk. If you would invest 452.00 in Nio Class A on July 20, 2025 and sell it today you would earn a total of 223.00 from holding Nio Class A or generate 49.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nio Class A vs. Cypress Development Corp
Performance |
| Timeline |
| Nio Class A |
| Cypress Development Corp |
Nio and Cypress Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nio and Cypress Development
The main advantage of trading using opposite Nio and Cypress Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nio position performs unexpectedly, Cypress Development 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 Cypress Development will offset losses from the drop in Cypress Development's long position.| Nio vs. Rivian Automotive | Nio vs. Honda Motor Co | Nio vs. Mobileye Global Class | Nio vs. Yum China Holdings |
| Cypress Development vs. Eskay Mining Corp | Cypress Development vs. Wealth Minerals | Cypress Development vs. West High Yield | Cypress Development vs. Cauldron Energy Limited |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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