Dada Nexus Story

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DADA -- USA Stock  

USD 56.53  8.53  17.77%

It looks like JD will continue to recover much faster as its share price surged up 1.98% today to Dada Nexus's 30.4646%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to go over Dada Nexus Limited a little further and understand how it stands against JD and other similar entities. We are going to analyze some of the competitive aspects of both Dada Nexus and JD.
Published few days ago
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What should I buy JD (NASDAQ:JD) or Dada Nexus (NASDAQ:DADA)?
By analyzing existing basic indicators between Dada Nexus and JD, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in JD with a short position in Dada Nexus. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Dada Nexus suggests not a very effective usage of assets in November.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Dada Nexus or JUMIA is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Correlation Between Dada Nexus and JUMIA TECHNOLOGIES

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Dada Nexus together with similar or unrelated positions with a negative correlation. For example, you can also add JUMIA TECHNOLOGIES to your portfolio. If JUMIA TECHNOLOGIES is not perfectly correlated to Dada Nexus it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Dada Nexus for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between DADA and JMIA for more information.

How Dada Nexus utilizes its cash?

To perform a cash flow analysis of Dada Nexus, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Dada Nexus is receiving and how much cash it distributes out in a given period. The Dada Nexus cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Dada Nexus Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (1.3 Billion)

Can Dada Nexus build up on the current rise?

The treynor ratio is down to -18.8 as of today. Dada Nexus Limited exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Dada Nexus Limited individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Dada Nexus future systematic risk.

Our Conclusion on Dada Nexus

Whereas some companies under the internet retail industry are still a bit expensive, Dada Nexus may offer a potential longer-term growth to investors. To conclude, as of the 20th of November 2020, our analysis shows that Dada Nexus moves indifferently to market moves. The company is overvalued and projects close to average probability of financial unrest for the next 2 years. Our latest 30 days buy vs. sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Dada Nexus Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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