Correlation Between Dingdong ADR and Sadot

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

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

Diversification Opportunities for Dingdong ADR and Sadot

0.03

Correlation Coefficient

Dingdong ADR  Sadot

Significant diversification

The 3 months correlation between Dingdong and Sadot is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dingdong ADR and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot Group and Dingdong ADR 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 Dingdong ADR are associated (or correlated) with Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Dingdong ADR i.e., Dingdong ADR and Sadot go up and down completely randomly.

Pair Corralation between Dingdong ADR and Sadot

Considering the 90-day investment horizon Dingdong ADR is expected to generate 0.36 times more return on investment than Sadot. However, Dingdong ADR is 2.75 times less risky than Sadot. It trades about -0.12 of its potential returns per unit of risk. Sadot Group is currently generating about -0.06 per unit of risk. If you would invest  268.00  in Dingdong ADR on May 2, 2025 and sell it today you would lose (60.00) from holding Dingdong ADR or give up 22.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Dingdong ADR  vs.  Sadot Group

Dingdong ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dingdong ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Sadot Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Dingdong ADR and Sadot

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

The idea behind Dingdong ADR and Sadot Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.