Dada Nexus Stock Volatility

Dada Nexus secures Sharpe Ratio (or Efficiency) of -0.21, which denotes the company had -0.21% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Dada Nexus exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Dada Nexus mean deviation of 3.7 to check the risk estimate we provide.
  
Dada Nexus Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Dada Nexus daily returns, and it is calculated using variance and standard deviation. We also use Dada Nexus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Dada Nexus volatility.

Dada Nexus Stock Volatility Analysis

Volatility refers to the frequency at which Dada Nexus stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Dada Nexus' price changes. Investors will then calculate the volatility of Dada Nexus' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Dada Nexus' volatility:

Historical Volatility

This type of stock volatility measures Dada Nexus' fluctuations based on previous trends. It's commonly used to predict Dada Nexus' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Dada Nexus' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Dada Nexus' to be redeemed at a future date.
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Dada Nexus Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.0262 suggesting Dada Nexus market returns are sensitive to returns on the market. As the market goes up or down, Dada Nexus is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Dada Nexus or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Dada Nexus' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Dada Nexus stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Dada Nexus is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Dada Nexus' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how dada nexus stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Dada Nexus Price Volatility?

Several factors can influence a Stock's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Dada Nexus Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Dada Nexus or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Dada Nexus' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Dada Nexus stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Given the investment horizon of 90 days the coefficient of variation of Dada Nexus is -487.31. The daily returns are distributed with a variance of 19.15 and standard deviation of 4.38. The mean deviation of Dada Nexus is currently at 3.7. For similar time horizon, the selected benchmark (DOW) has volatility of 1.12
α
Alpha over DOW
-0.82
β
Beta against DOW1.03
σ
Overall volatility
4.38
Ir
Information ratio -0.19

Dada Nexus Stock Return Volatility

Dada Nexus historical daily return volatility represents how much of Dada Nexus stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 4.3761% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1358% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

Dada Nexus Investment Opportunity

Dada Nexus has a volatility of 4.38 and is 3.84 times more volatile than DOW. 38  of all equities and portfolios are less risky than Dada Nexus. Compared to the overall equity markets, volatility of historical daily returns of Dada Nexus is lower than 38 () of all global equities and portfolios over the last 90 days. Use Dada Nexus to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Dada Nexus to be traded at $0.0 in 90 days.

Modest diversification

The correlation between Dada Nexus Ltd and DJI is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dada Nexus Ltd and DJI in the same portfolio, assuming nothing else is changed.

Dada Nexus Additional Risk Indicators

The analysis of Dada Nexus' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Dada Nexus' investment and either accepting that risk or mitigating it. Along with some common measures of Dada Nexus stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Dada Nexus Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Dada Nexus as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Dada Nexus' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Dada Nexus' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Dada Nexus.
Check out Investing Opportunities. Note that the Dada Nexus information on this page should be used as a complementary analysis to other Dada Nexus' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Tools for Dada Nexus Stock

When running Dada Nexus price analysis, check to measure Dada Nexus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dada Nexus is operating at the current time. Most of Dada Nexus' value examination focuses on studying past and present price action to predict the probability of Dada Nexus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Dada Nexus' price. Additionally, you may evaluate how the addition of Dada Nexus to your portfolios can decrease your overall portfolio volatility.
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