Correlation Between Dupont De and Kuk Young
Can any of the company-specific risk be diversified away by investing in both Dupont De and Kuk Young at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dupont De and Kuk Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Kuk Young GM, you can compare the effects of market volatilities on Dupont De and Kuk Young 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 Kuk Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Kuk Young.
Diversification Opportunities for Dupont De and Kuk Young
Average diversification
The 3 months correlation between Dupont and Kuk is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Kuk Young GM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuk Young GM 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 Kuk Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuk Young GM has no effect on the direction of Dupont De i.e., Dupont De and Kuk Young go up and down completely randomly.
Pair Corralation between Dupont De and Kuk Young
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Kuk Young. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 4.82 times less risky than Kuk Young. The stock trades about -0.02 of its potential returns per unit of risk. The Kuk Young GM is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 187,400 in Kuk Young GM on August 25, 2024 and sell it today you would earn a total of 36,100 from holding Kuk Young GM or generate 19.26% 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. Kuk Young GM
Performance |
| Timeline |
| Dupont De Nemours |
| Kuk Young GM |
Dupont De and Kuk Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Kuk Young
The main advantage of trading using opposite Dupont De and Kuk Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Kuk Young 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 Kuk Young will offset losses from the drop in Kuk Young'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 |
| Kuk Young vs. Korea Information Communications | Kuk Young vs. Automobile Pc | Kuk Young vs. Golden Bridge Investment | Kuk Young vs. Asiana Airlines |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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