NIO vs Rivian Automotive (NIO vs RIVN) 2026: Stock Returns, Risk & Volatility

Q: Which is a better investment: NIO or RIVN?

Over the past year, NIO looks like the better investment: it had higher total return (NIO +55.8% vs RIVN +34.3%) and a higher Sharpe ratio (NIO 0.96 vs RIVN 0.71). On risk, NIO was less volatile (NIO 61.6% vs RIVN 63.1%), RIVN had a smaller max drawdown (RIVN -38.8% vs NIO -43.7%), and RIVN had less severe losses on the worst 5% of days (Expected Shortfall of RIVN -6.72% vs NIO -7.29%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: NIO or RIVN?

Over the past year, NIO outperformed RIVN. NIO returned +55.8% compared with RIVN’s +34.3%. NIO had the better risk-adjusted return, with a Sharpe ratio of 0.96 versus RIVN’s 0.71. NIO was less volatile than RIVN, but RIVN had a smaller max drawdown than NIO.

Total Return

NIO +55.8%

RIVN +34.3%

Sharpe Ratio

NIO 0.96

RIVN 0.71

Annualized Volatility

NIO 61.6%

RIVN 63.1%

Max Drawdown

NIO -43.7%

RIVN -38.8%

Metric winners: Total Return: NIO; Sharpe Ratio: NIO; Annualized Volatility: NIO (less volatile); Max Drawdown: RIVN (smaller drawdown).

NIO Total Return

↑ +55.8%

RIVN Total Return

↑ +34.3%

Relative Performance of NIO vs RIVN (Normalized to 100)

NIO RIVN

Normalized to 100 at start date for comparison

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Key Takeaways

Total Return: NIO delivered a +55.8% total return, while RIVN returned +34.3% over the same period. NIO outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): NIO had a higher Sharpe (0.96 vs 0.71), indicating better risk-adjusted performance.
Volatility (Annualized): RIVN was more volatile, with 63.1% annualized volatility, versus 61.6% for NIO.
Maximum Drawdown: RIVN's maximum drawdown was -38.8%, while NIO experienced a deeper drawdown of -43.7%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), NIO's VaR was -5.44% and its Expected Shortfall (CVaR) was -7.29%; RIVN's were -5.37% and -6.72%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: NIO 0.44 vs RIVN 1.82. Excess kurtosis: NIO 0.88 vs RIVN 8.91. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): NIO 6/7, RIVN 4/6. Worst day: NIO -10.05% (2025-10-10) vs RIVN -8.11% (2026-03-12). Best day: NIO +15.38% (2026-03-10) vs RIVN +26.64% (2026-02-13).
Risk ratios: Sortino - NIO: 1.58 vs. RIVN: 1.30 , Calmar - NIO: 1.29 vs. RIVN: 0.89 , Sterling - NIO: 2.30 vs. RIVN: 1.03 , Treynor - NIO: 0.46 vs. RIVN: 0.28 , Ulcer Index - NIO: 23.66% vs. RIVN: 21.85%

Investment Comparison

If you invested $10,000 in each asset on April 25, 2025:

NIO $15,583.13 +55.8%

RIVN $13,431.06 +34.3%

Difference: $2,152.07 (NIO ahead)

NIO vs Rivian Automotive Performance Over Time

Metric	NIO	RIVN
30 Days	9.6%	5.3%
90 Days	35.3%	6.3%
180 Days	-9%	30.6%
1 Year	55.8%	34.3%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

NIO vs Rivian Automotive Correlation

Average Correlation

weakly correlated

0.19

Current (30-day) 0.45

30-day rolling range -0.18 to +0.49

NIO and Rivian Automotive are weakly correlated over the past year. With a correlation of 0.19, these assets show meaningful independence, offering diversification benefits when held together.

For portfolio construction, this weak correlation suggests that combining NIO and RIVN could reduce overall portfolio variance. However, correlations can increase during market stress.

Metric	Value
Current (30-day)	0.45
Average (full period)	0.19
Minimum (30-day rolling)	-0.18
Maximum (30-day rolling)	0.49

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement. Current, minimum, and maximum figures are 30-day rolling correlations on shared daily returns.

Drawdown

Maximum Drawdown

NIO

-43.7%

RIVN

-38.8%

NIO experienced its maximum drawdown of -43.7% from 2025-10-02 to 2026-02-04. It has not yet recovered to its previous peak.

Rivian Automotive experienced its maximum drawdown of -38.8% from 2025-12-19 to 2026-02-05. It has not yet recovered to its previous peak.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

NIO vs Rivian Automotive Volatility (NIO vs RIVN)

NIO Volatility

61.6%

±3.88% 1-day vol

RIVN Volatility

63.1%

±3.98% 1-day vol

1-day volatility (1σ)

NIO

±3.88%

RIVN

±3.98%

NIO's 61.6% annualized volatility translates to about ±3.88% one-standard-deviation daily volatility.

Rivian Automotive's 63.1% annualized volatility translates to about ±3.98% one-standard-deviation daily volatility.

RIVN had the wider volatility profile over this window. That means its day-to-day return distribution was broader; NIO was calmer, but lower volatility does not by itself mean better returns.

Treat the ± daily figure as a one-standard-deviation estimate from historical returns, not a forecast or expected absolute daily move. For context, 15-18% annualized volatility is roughly ±1% one-standard-deviation daily volatility.

Risk-adjusted ratios

Sharpe Ratio of NIO and RIVN

Sharpe Ratio: NIO vs. RIVN

Return per total volatility

Sharpe gives us excess return per unit of risk. Upside and downside volatility both count as risk.

Higher is better

excess return / total volatility

Formula

\displaystyle \mathrm{Sharpe} = \frac{\mathbb{E}[R] - R_f}{\sigma_R}

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. NIO had a higher Sharpe (0.96 vs 0.71), indicating better risk-adjusted performance.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of NIO and RIVN

Sortino Ratio: NIO vs. RIVN

Return per downside volatility

Sortino keeps the return-over-risk idea, but only returns below the target rate count as volatility.

Higher is better

excess return / downside volatility

Formula

\displaystyle \mathrm{Sortino} = \frac{\mathbb{E}[R] - R_f}{\sigma_{\mathrm{down}}}

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). NIO had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: NIO 37.7% vs RIVN 34.3%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of NIO and RIVN

Calmar Ratio: NIO vs. RIVN

CAGR per worst drawdown

Calmar compares CAGR against the single deepest peak-to-trough loss over the period.

Higher is better

CAGR / max drawdown

Formula

\displaystyle \mathrm{Calmar} = \frac{\mathrm{CAGR}}{|\mathrm{MaxDD}|}

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. NIO posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of NIO and RIVN

Sterling Ratio: NIO vs. RIVN

Return per average drawdown

Sterling smooths the drawdown penalty by using average drawdown events instead of only the worst one.

Higher is better

excess annual return / average deep drawdown

Formula

\displaystyle \mathrm{Sterling} = \frac{\mathrm{CAGR} - R_f}{\overline{D}_{>10\%}}

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). NIO posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of NIO and RIVN

Treynor Ratio: NIO vs. RIVN

Excess return per market beta

Treynor divides excess annualized return by beta — the sensitivity of the asset to broad-market moves. The slope shown is each asset’s beta vs SPY.

Higher is better

excess return / market beta

Formula

\displaystyle \mathrm{Treynor} = \frac{\mathbb{E}[R] - R_f}{\beta}

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. NIO posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of NIO and RIVN

Ulcer Index: NIO vs. RIVN

Drawdown pain

Ulcer Index is a risk index, not a return-over-risk ratio. Lower means smaller and shorter drawdowns.

Lower is better

root-mean-square drawdown

Formula

\displaystyle \mathrm{UI} = \sqrt{\mathbb{E}[D_t^2]}

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. RIVN had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): NIO vs. Rivian Automotive

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Tail Risk & Distribution Shape: NIO vs. RIVN (1-Year)

Actual daily return tails

The bars are real daily log-return observations from the article window. Darker bars are observations at or beyond each asset’s 5% VaR cutoff.

Observed returns

VaR marks the 5th percentile loss cutoff; Expected Shortfall averages the observations beyond that cutoff.

Formula

\displaystyle \mathrm{VaR}_{5\%}=Q_{0.05}(r_t),\quad \mathrm{ES}_{5\%}=\mathbb{E}[r_t\mid r_t\le \mathrm{VaR}_{5\%}]

Metric (1-Year)	NIO	RIVN
5% VaR (daily log return)	-5.44%	-5.37%
5% Expected Shortfall (CVaR)	-7.29% (worst 13 days)	-6.72% (worst 13 days)
Skew	0.44	1.82
Excess kurtosis	0.88	8.91
2σ tail days (down / up)	6 / 7	4 / 6
Worst day	-10.05% (2025-10-10)	-8.11% (2026-03-12)
Best day	+15.38% (2026-03-10)	+26.64% (2026-02-13)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=249). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

Downside co-move map: NIO vs. RIVN (2σ)

Shared-close daily returns

Dots mark actual downside days: asset-colored dots are one-sided downside moves, and red dots are joint downside days. Grey dots add sampled shared-return context when available. The shaded lower-left zone shows where both NIO and RIVN crossed their own 2σ downside threshold.

2σ

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both NIO and RIVN had a big down day (2σ)

Date (interval)	NIO	RIVN
2026-03-20	-7.81%	-7.51%

Days when NIO had a big down day

Date (interval)	NIO	RIVN
2025-08-01 → 2025-08-04	-8.18%	+0.24%
2025-08-12	-8.96%	+0.34%
2025-09-10	-8.92%	-0.22%
2025-10-10	-10.05%	-2.22%
2025-12-31	-7.27%	+0.61%
2026-03-20	-7.81%	-7.51%

Days when RIVN had a big down day

Date (interval)	NIO	RIVN
2025-10-02	+3.14%	-7.39%
2025-11-14	-1.28%	-7.81%
2026-03-12	+1.46%	-8.11%
2026-03-20	-7.81%	-7.51%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Full Comparison of NIO vs. Rivian Automotive (1-Year)

Metric	NIO	RIVN
Total Return	+55.8%	+34.3%
Annualized Volatility	61.6%	63.1%
Sharpe Ratio	0.96	0.71
Sortino Ratio	1.58	1.30
Calmar Ratio	1.29	0.89
Sterling Ratio	2.30	1.03
Treynor Ratio	0.46	0.28
Ulcer Index	23.66%	21.85%
Max Drawdown	-43.7%	-38.8%
Avg Correlation to S&P 500	0.25	0.29
5% VaR (daily log return)	-5.44%	-5.37%
5% Expected Shortfall (CVaR)	-7.29%	-6.72%
Skew	0.44	1.82
Excess kurtosis	0.88	8.91
2σ tail days (down / up)	6 / 7	4 / 6

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-04-25 → 2026-04-23 (last shared close).
Rolling correlation sample (shared closes): 220 rolling 30-day values (from 249 shared daily returns).
Annualization (days/year): NIO: 252 days/year; RIVN: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

NIO: 4.17% over 2025-04-25 → 2026-04-23.

RIVN: 4.17% over 2025-04-25 → 2026-04-23.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

NIO: ≈ -19.0%/yr

RIVN: ≈ -19.9%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

NIO vs Rivian Automotive: Frequently Asked Questions

Which has higher volatility: NIO or RIVN?

RIVN showed higher volatility at 63.1% annualized, compared to 61.6% for NIO Over the past year. Higher volatility means larger price swings in both directions.

Does NIO provide diversification when held with RIVN?

NIO and RIVN are weakly correlated over the past year, with an average correlation of 0.19. This weak correlation suggests meaningful diversification benefits when held together.

How bad are the worst 5% days for NIO vs RIVN?

Over the past year, NIO's 5% VaR was -5.44% and its 5% Expected Shortfall was -7.29% (worst 13 days). RIVN's were -5.37% and -6.72% (worst 13 days).

Do NIO and RIVN crash together on bad days?

On shared dates (n=249), when RIVN has a 2σ down day, NIO also does 25.0% (1/4 days). In the other direction, when NIO has one, RIVN also does 16.7% (1/6 days).

Which has better risk-adjusted returns: NIO or RIVN?

NIO showed better risk-adjusted performance with a Sharpe ratio of 0.96 versus RIVN's 0.71 Over the past year.

Can NIO and RIVN be combined in a portfolio?

Yes, though allocation sizing matters. Their weak correlation could meaningfully reduce overall portfolio variance. RIVN's higher volatility (63.1%) means even small allocations can materially impact overall portfolio risk.

Explore our financial glossary

Which is a better investment: NIO or RIVN?

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Relative Performance of NIO vs RIVN (Normalized to 100)

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Key Takeaways

Investment Comparison

NIO vs Rivian Automotive Performance Over Time

NIO vs Rivian Automotive Correlation

Drawdown

NIO vs Rivian Automotive Volatility (NIO vs RIVN)

Risk-adjusted ratios

Sharpe Ratio of NIO and RIVN

Sharpe Ratio: NIO vs. RIVN

Sortino Ratio of NIO and RIVN

Sortino Ratio: NIO vs. RIVN

Calmar Ratio of NIO and RIVN

Calmar Ratio: NIO vs. RIVN

Sterling Ratio of NIO and RIVN

Sterling Ratio: NIO vs. RIVN

Treynor Ratio of NIO and RIVN

Treynor Ratio: NIO vs. RIVN

Ulcer Index of NIO and RIVN

Ulcer Index: NIO vs. RIVN

Tail Risk & Distribution Shape (1-Year): NIO vs. Rivian Automotive

Tail Risk & Distribution Shape: NIO vs. RIVN (1-Year)

Downside co-moves (2σ) — 1-Year

Downside co-move map: NIO vs. RIVN (2σ)

Days when both NIO and RIVN had a big down day (2σ)

Days when NIO had a big down day

Days when RIVN had a big down day

Full Comparison of NIO vs. Rivian Automotive (1-Year)

Inputs & conventions

Formulas

NIO vs Rivian Automotive: Frequently Asked Questions

Which has higher volatility: NIO or RIVN?

Does NIO provide diversification when held with RIVN?

How bad are the worst 5% days for NIO vs RIVN?

Do NIO and RIVN crash together on bad days?

Which has better risk-adjusted returns: NIO or RIVN?

Can NIO and RIVN be combined in a portfolio?