Correlation Between Dupont De and Asia Polymer
Can any of the company-specific risk be diversified away by investing in both Dupont De and Asia Polymer 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 Asia Polymer 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 Asia Polymer Corp, you can compare the effects of market volatilities on Dupont De and Asia Polymer 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 Asia Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Asia Polymer.
Diversification Opportunities for Dupont De and Asia Polymer
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Asia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Asia Polymer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Polymer Corp 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 Asia Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Polymer Corp has no effect on the direction of Dupont De i.e., Dupont De and Asia Polymer go up and down completely randomly.
Pair Corralation between Dupont De and Asia Polymer
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Asia Polymer. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 2.11 times less risky than Asia Polymer. The stock trades about -0.02 of its potential returns per unit of risk. The Asia Polymer Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,645 in Asia Polymer Corp on August 25, 2024 and sell it today you would earn a total of 65.00 from holding Asia Polymer Corp or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dupont De Nemours vs. Asia Polymer Corp
Performance |
| Timeline |
| Dupont De Nemours |
| Asia Polymer Corp |
Dupont De and Asia Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Asia Polymer
The main advantage of trading using opposite Dupont De and Asia Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Asia Polymer 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 Asia Polymer will offset losses from the drop in Asia Polymer's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Asia Polymer vs. USI Corp | Asia Polymer vs. Taiwan Styrene Monomer | Asia Polymer vs. UPC Technology Corp | Asia Polymer vs. Grand Pacific Petrochemical |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |