Correlation Between Dupont De and Xinjiang Zhongtai
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By analyzing existing cross correlation between Dupont De Nemours and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Dupont De and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Xinjiang Zhongtai.
Diversification Opportunities for Dupont De and Xinjiang Zhongtai
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Xinjiang is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Dupont De i.e., Dupont De and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Dupont De and Xinjiang Zhongtai
Allowing for the 90-day total investment horizon Dupont De is expected to generate 6.98 times less return on investment than Xinjiang Zhongtai. But when comparing it to its historical volatility, Dupont De Nemours is 1.47 times less risky than Xinjiang Zhongtai. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 406.00 in Xinjiang Zhongtai Chemical on September 5, 2024 and sell it today you would earn a total of 62.00 from holding Xinjiang Zhongtai Chemical or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dupont De Nemours vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Dupont De Nemours |
| Xinjiang Zhongtai |
Dupont De and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Xinjiang Zhongtai
The main advantage of trading using opposite Dupont De and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Xinjiang Zhongtai vs. Zijin Mining Group | Xinjiang Zhongtai vs. Wanhua Chemical Group | Xinjiang Zhongtai vs. Baoshan Iron Steel | Xinjiang Zhongtai vs. Shandong Gold Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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