Correlation Between Niu Technologies and Caterpillar
Can any of the company-specific risk be diversified away by investing in both Niu Technologies and Caterpillar 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 Caterpillar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niu Technologies and Caterpillar, you can compare the effects of market volatilities on Niu Technologies and Caterpillar 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 Caterpillar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niu Technologies and Caterpillar.
Diversification Opportunities for Niu Technologies and Caterpillar
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Niu and Caterpillar is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Niu Technologies and Caterpillar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caterpillar 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 Caterpillar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caterpillar has no effect on the direction of Niu Technologies i.e., Niu Technologies and Caterpillar go up and down completely randomly.
Pair Corralation between Niu Technologies and Caterpillar
Considering the 90-day investment horizon Niu Technologies is expected to generate 3.26 times more return on investment than Caterpillar. However, Niu Technologies is 3.26 times more volatile than Caterpillar. It trades about 0.11 of its potential returns per unit of risk. Caterpillar is currently generating about 0.2 per unit of risk. If you would invest 342.00 in Niu Technologies on June 10, 2025 and sell it today you would earn a total of 92.00 from holding Niu Technologies or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niu Technologies vs. Caterpillar
Performance |
| Timeline |
| Niu Technologies |
| Caterpillar |
Niu Technologies and Caterpillar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niu Technologies and Caterpillar
The main advantage of trading using opposite Niu Technologies and Caterpillar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niu Technologies position performs unexpectedly, Caterpillar 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 Caterpillar will offset losses from the drop in Caterpillar's long position.| Niu Technologies vs. BYD Co Ltd | Niu Technologies vs. Kandi Technologies Group | Niu Technologies vs. Li Auto | Niu Technologies vs. Polestar Automotive Holding |
| Caterpillar vs. Blue Bird Corp | Caterpillar vs. Hyliion Holdings Corp | Caterpillar vs. Kandi Technologies Group | Caterpillar vs. Niu Technologies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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