Correlation Between WEBUY GLOBAL and Dada Nexus

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

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

Diversification Opportunities for WEBUY GLOBAL and Dada Nexus

0.49

Correlation Coefficient

WEBUY GLOBAL  Dada Nexus

Very weak diversification

The 3 months correlation between WEBUY and Dada is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD and Dada Nexus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dada Nexus and WEBUY GLOBAL 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 WEBUY GLOBAL LTD 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 WEBUY GLOBAL i.e., WEBUY GLOBAL and Dada Nexus go up and down completely randomly.

Pair Corralation between WEBUY GLOBAL and Dada Nexus

Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to generate 14.54 times more return on investment than Dada Nexus. However, WEBUY GLOBAL is 14.54 times more volatile than Dada Nexus. It trades about 0.08 of its potential returns per unit of risk. Dada Nexus is currently generating about -0.01 per unit of risk. If you would invest  331.00  in WEBUY GLOBAL LTD on May 6, 2025 and sell it today you would earn a total of  19.00  from holding WEBUY GLOBAL LTD or generate 5.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	48.39%
Values	Daily Returns

WEBUY GLOBAL LTD  vs.  Dada Nexus

WEBUY GLOBAL LTD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WEBUY GLOBAL LTD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, WEBUY GLOBAL showed solid returns over the last few months and may actually be approaching a breakup point.

Dada Nexus

Risk-Adjusted Performance

Very Weak

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

Pair Trading with WEBUY GLOBAL and Dada Nexus

The main advantage of trading using opposite WEBUY GLOBAL and Dada Nexus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBUY GLOBAL 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 WEBUY GLOBAL LTD 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.

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 CEOs Directory module to screen CEOs from public companies around the world.