Correlation Between Nio and Six Flags
Can any of the company-specific risk be diversified away by investing in both Nio and Six Flags 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 Six Flags 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 Six Flags Entertainment, you can compare the effects of market volatilities on Nio and Six Flags 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 Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nio and Six Flags.
Diversification Opportunities for Nio and Six Flags
Very weak diversification
The 3 months correlation between Nio and Six is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nio Class A and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment 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 Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Nio i.e., Nio and Six Flags go up and down completely randomly.
Pair Corralation between Nio and Six Flags
Considering the 90-day investment horizon Nio Class A is expected to generate 0.8 times more return on investment than Six Flags. However, Nio Class A is 1.24 times less risky than Six Flags. It trades about -0.08 of its potential returns per unit of risk. Six Flags Entertainment is currently generating about -0.12 per unit of risk. If you would invest 658.00 in Nio Class A on September 2, 2025 and sell it today you would lose (140.00) from holding Nio Class A or give up 21.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nio Class A vs. Six Flags Entertainment
Performance |
| Timeline |
| Nio Class A |
| Six Flags Entertainment |
Nio and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nio and Six Flags
The main advantage of trading using opposite Nio and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nio position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| Nio vs. Sphere Entertainment Co | Nio vs. Blue Moon Metals | Nio vs. Evolution Mining Limited | Nio vs. Sulliden Mining Capital |
| Six Flags vs. On4 Communications | Six Flags vs. World of Wireless | Six Flags vs. Integrated Drilling Equipment | Six Flags vs. AKITA Drilling |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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