Correlation Between Dupont De and Guangzhou Zhujiang
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By analyzing existing cross correlation between Dupont De Nemours and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Dupont De and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Guangzhou Zhujiang.
Diversification Opportunities for Dupont De and Guangzhou Zhujiang
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dupont and Guangzhou is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Dupont De i.e., Dupont De and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Dupont De and Guangzhou Zhujiang
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.77 times more return on investment than Guangzhou Zhujiang. However, Dupont De is 1.77 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.18 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.08 per unit of risk. If you would invest 7,666 in Dupont De Nemours on November 27, 2024 and sell it today you would earn a total of 516.00 from holding Dupont De Nemours or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Dupont De Nemours |
| Guangzhou Zhujiang |
Dupont De and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Guangzhou Zhujiang
The main advantage of trading using opposite Dupont De and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Guangzhou Zhujiang vs. Vanfund Urban Investment | Guangzhou Zhujiang vs. Suzhou Xingye Material | Guangzhou Zhujiang vs. Metro Investment Development | Guangzhou Zhujiang vs. Western Metal Materials |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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