Correlation Between Dupont De and Fujian Newland
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By analyzing existing cross correlation between Dupont De Nemours and Fujian Newland Computer, you can compare the effects of market volatilities on Dupont De and Fujian Newland 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 Dupont De with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Fujian Newland.
Diversification Opportunities for Dupont De and Fujian Newland
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Fujian is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Dupont De 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 Dupont De Nemours are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Dupont De i.e., Dupont De and Fujian Newland go up and down completely randomly.
Pair Corralation between Dupont De and Fujian Newland
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Fujian Newland. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 2.41 times less risky than Fujian Newland. The stock trades about -0.02 of its potential returns per unit of risk. The Fujian Newland Computer is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,649 in Fujian Newland Computer on August 25, 2024 and sell it today you would earn a total of 356.00 from holding Fujian Newland Computer or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Fujian Newland Computer
Performance |
| Timeline |
| Dupont De Nemours |
| Fujian Newland Computer |
Dupont De and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Fujian Newland
The main advantage of trading using opposite Dupont De and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology | Fujian Newland vs. Xiamen East Asia |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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