Correlation Between Dupont De and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both Dupont De and Eiffage SA 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 Eiffage SA 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 Eiffage SA, you can compare the effects of market volatilities on Dupont De and Eiffage SA 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 Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Eiffage SA.
Diversification Opportunities for Dupont De and Eiffage SA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Eiffage is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Eiffage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA 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 Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA has no effect on the direction of Dupont De i.e., Dupont De and Eiffage SA go up and down completely randomly.
Pair Corralation between Dupont De and Eiffage SA
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.28 times more return on investment than Eiffage SA. However, Dupont De is 1.28 times more volatile than Eiffage SA. It trades about 0.03 of its potential returns per unit of risk. Eiffage SA is currently generating about 0.0 per unit of risk. If you would invest 6,813 in Dupont De Nemours on August 26, 2024 and sell it today you would earn a total of 1,519 from holding Dupont De Nemours or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.38% |
| Values | Daily Returns |
Dupont De Nemours vs. Eiffage SA
Performance |
| Timeline |
| Dupont De Nemours |
| Eiffage SA |
Dupont De and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Eiffage SA
The main advantage of trading using opposite Dupont De and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Eiffage SA vs. Spirent Communications plc | Eiffage SA vs. Cairo Communication SpA | Eiffage SA vs. Zegona Communications Plc | Eiffage SA vs. Charter Communications Cl |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |