Correlation Between DSJA and EMQQ Emerging

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

By analyzing existing cross correlation between DSJA and EMQQ The Emerging, you can compare the effects of market volatilities on DSJA and EMQQ Emerging 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 DSJA with a short position of EMQQ Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and EMQQ Emerging.

Diversification Opportunities for DSJA and EMQQ Emerging

-0.83

Correlation Coefficient

DSJA  EMQQ Emerging

Pay attention - limited upside

The 3 months correlation between DSJA and EMQQ is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and EMQQ The Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMQQ The Emerging and DSJA 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 DSJA are associated (or correlated) with EMQQ Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMQQ The Emerging has no effect on the direction of DSJA i.e., DSJA and EMQQ Emerging go up and down completely randomly.

Pair Corralation between DSJA and EMQQ Emerging

Given the investment horizon of 90 days DSJA is expected to generate 0.39 times more return on investment than EMQQ Emerging. However, DSJA is 2.56 times less risky than EMQQ Emerging. It trades about 0.17 of its potential returns per unit of risk. EMQQ The Emerging is currently generating about 0.01 per unit of risk. If you would invest  2,513  in DSJA on October 11, 2024 and sell it today you would earn a total of  352.00  from holding DSJA or generate 14.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	25.86%
Values	Daily Returns

DSJA  vs.  EMQQ The Emerging

DSJA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSJA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking indicators, DSJA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

EMQQ The Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EMQQ The Emerging has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with DSJA and EMQQ Emerging

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

The idea behind DSJA and EMQQ The Emerging 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.