Correlation Between Doubledown Interactive and Li Auto
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and Li Auto 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 Doubledown Interactive and Li Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Li Auto, you can compare the effects of market volatilities on Doubledown Interactive and Li Auto 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 Doubledown Interactive with a short position of Li Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Li Auto.
Diversification Opportunities for Doubledown Interactive and Li Auto
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Doubledown and Li Auto is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Li Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Auto and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Li Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Auto has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Li Auto go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Li Auto
Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 1.01 times more return on investment than Li Auto. However, Doubledown Interactive is 1.01 times more volatile than Li Auto. It trades about 0.04 of its potential returns per unit of risk. Li Auto is currently generating about 0.03 per unit of risk. If you would invest 937.00 in Doubledown Interactive Co on September 2, 2024 and sell it today you would earn a total of 463.00 from holding Doubledown Interactive Co or generate 49.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Li Auto
Performance |
| Timeline |
| Doubledown Interactive |
| Li Auto |
Doubledown Interactive and Li Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Li Auto
The main advantage of trading using opposite Doubledown Interactive and Li Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, Li Auto 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 Li Auto will offset losses from the drop in Li Auto's long position.| Doubledown Interactive vs. Gravity Co | Doubledown Interactive vs. NetEase | Doubledown Interactive vs. Snail, Class A | Doubledown Interactive vs. GameSquare Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |