Correlation Between Dupont De and Kortek
Can any of the company-specific risk be diversified away by investing in both Dupont De and Kortek 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 Kortek 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 Kortek, you can compare the effects of market volatilities on Dupont De and Kortek 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 Kortek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Kortek.
Diversification Opportunities for Dupont De and Kortek
Very weak diversification
The 3 months correlation between Dupont and Kortek is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Kortek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kortek 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 Kortek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kortek has no effect on the direction of Dupont De i.e., Dupont De and Kortek go up and down completely randomly.
Pair Corralation between Dupont De and Kortek
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Kortek. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 1.02 times less risky than Kortek. The stock trades about -0.1 of its potential returns per unit of risk. The Kortek is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 780,000 in Kortek on August 30, 2024 and sell it today you would lose (4,000) from holding Kortek or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Dupont De Nemours vs. Kortek
Performance |
| Timeline |
| Dupont De Nemours |
| Kortek |
Dupont De and Kortek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Kortek
The main advantage of trading using opposite Dupont De and Kortek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Kortek 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 Kortek will offset losses from the drop in Kortek's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Kortek vs. Korea Computer Terminal | Kortek vs. Suprema ID | Kortek vs. Korea Information Engineering | Kortek vs. Haesung Optics Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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