Correlation Between 17 Education and Dada Nexus
Can any of the company-specific risk be diversified away by investing in both 17 Education 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 17 Education and Dada Nexus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 17 Education Technology and Dada Nexus, you can compare the effects of market volatilities on 17 Education 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 17 Education with a short position of Dada Nexus. Check out your portfolio center. Please also check ongoing floating volatility patterns of 17 Education and Dada Nexus.
Diversification Opportunities for 17 Education and Dada Nexus
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 17 Education and Dada is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding 17 Education Technology and Dada Nexus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dada Nexus and 17 Education 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 17 Education Technology 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 17 Education i.e., 17 Education and Dada Nexus go up and down completely randomly.
Pair Corralation between 17 Education and Dada Nexus
Allowing for the 90-day total investment horizon 17 Education Technology is expected to generate 0.63 times more return on investment than Dada Nexus. However, 17 Education Technology is 1.6 times less risky than Dada Nexus. It trades about 0.01 of its potential returns per unit of risk. Dada Nexus is currently generating about -0.17 per unit of risk. If you would invest 201.00 in 17 Education Technology on August 30, 2024 and sell it today you would earn a total of 0.00 from holding 17 Education Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
17 Education Technology vs. Dada Nexus
Performance |
| Timeline |
| 17 Education Technology |
| Dada Nexus |
17 Education and Dada Nexus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 17 Education and Dada Nexus
The main advantage of trading using opposite 17 Education and Dada Nexus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 17 Education 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.| 17 Education vs. Sunlands Technology Group | 17 Education vs. Ihuman Inc | 17 Education vs. Gaotu Techedu DRC | 17 Education vs. New Oriental Education |
| Dada Nexus vs. Vipshop Holdings Limited | Dada Nexus vs. JD Inc Adr | Dada Nexus vs. PDD Holdings | Dada Nexus vs. Jumia Technologies AG |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |