Correlation Between Ebet and Dada Nexus

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

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

Diversification Opportunities for Ebet and Dada Nexus

0.0

Correlation Coefficient

Ebet  Dada Nexus

Pay attention - limited upside

The 3 months correlation between Ebet and Dada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ebet Inc and Dada Nexus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dada Nexus and Ebet 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 Ebet Inc are associated (or correlated) with Dada Nexus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dada Nexus has no effect on the direction of Ebet i.e., Ebet and Dada Nexus go up and down completely randomly.

Pair Corralation between Ebet and Dada Nexus

If you would invest  136.00  in Dada Nexus on December 27, 2024 and sell it today you would earn a total of  52.00  from holding Dada Nexus or generate 38.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ebet Inc  vs.  Dada Nexus

Ebet Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ebet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Ebet is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Dada Nexus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dada Nexus are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Dada Nexus sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ebet and Dada Nexus

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

The idea behind Ebet Inc and Dada Nexus 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.