Correlation Between Marshall Ilsley and Dada Nexus
Can any of the company-specific risk be diversified away by investing in both Marshall Ilsley 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 Marshall Ilsley and Dada Nexus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marshall Ilsley Corp and Dada Nexus, you can compare the effects of market volatilities on Marshall Ilsley 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 Marshall Ilsley with a short position of Dada Nexus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marshall Ilsley and Dada Nexus.
Diversification Opportunities for Marshall Ilsley and Dada Nexus
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marshall and Dada is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Marshall Ilsley Corp and Dada Nexus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dada Nexus and Marshall Ilsley 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 Marshall Ilsley Corp 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 Marshall Ilsley i.e., Marshall Ilsley and Dada Nexus go up and down completely randomly.
Pair Corralation between Marshall Ilsley and Dada Nexus
Allowing for the 90-day total investment horizon Marshall Ilsley Corp is expected to generate 1.91 times more return on investment than Dada Nexus. However, Marshall Ilsley is 1.91 times more volatile than Dada Nexus. It trades about -0.02 of its potential returns per unit of risk. Dada Nexus is currently generating about -0.25 per unit of risk. If you would invest 644.00 in Marshall Ilsley Corp on March 13, 2024 and sell it today you would lose (38.00) from holding Marshall Ilsley Corp or give up 5.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Marshall Ilsley Corp vs. Dada Nexus
Performance |
Timeline |
Marshall Ilsley Corp |
Dada Nexus |
Marshall Ilsley and Dada Nexus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marshall Ilsley and Dada Nexus
The main advantage of trading using opposite Marshall Ilsley and Dada Nexus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marshall Ilsley 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.Marshall Ilsley vs. iPower Inc | Marshall Ilsley vs. ZKH Group Limited | Marshall Ilsley vs. D MARKET Electronic Services | Marshall Ilsley vs. Jowell Global |
Dada Nexus vs. Vipshop Holdings Limited | Dada Nexus vs. JD Inc Adr | Dada Nexus vs. Pinduoduo | 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |