Correlation Between Dupont De and Gordon Auto
Can any of the company-specific risk be diversified away by investing in both Dupont De and Gordon Auto 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 Gordon Auto 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 Gordon Auto Body, you can compare the effects of market volatilities on Dupont De and Gordon Auto 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 Gordon Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Gordon Auto.
Diversification Opportunities for Dupont De and Gordon Auto
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Gordon is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Gordon Auto Body in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gordon Auto Body 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 Gordon Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gordon Auto Body has no effect on the direction of Dupont De i.e., Dupont De and Gordon Auto go up and down completely randomly.
Pair Corralation between Dupont De and Gordon Auto
Allowing for the 90-day total investment horizon Dupont De is expected to generate 7.51 times less return on investment than Gordon Auto. But when comparing it to its historical volatility, Dupont De Nemours is 1.56 times less risky than Gordon Auto. It trades about 0.04 of its potential returns per unit of risk. Gordon Auto Body is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,180 in Gordon Auto Body on September 12, 2024 and sell it today you would earn a total of 755.00 from holding Gordon Auto Body or generate 23.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Dupont De Nemours vs. Gordon Auto Body
Performance |
| Timeline |
| Dupont De Nemours |
| Gordon Auto Body |
Dupont De and Gordon Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Gordon Auto
The main advantage of trading using opposite Dupont De and Gordon Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Gordon Auto 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 Gordon Auto will offset losses from the drop in Gordon Auto's long position.| Dupont De vs. Griffon | Dupont De vs. Merck Company | Dupont De vs. Brinker International | Dupont De vs. Alcoa Corp |
| Gordon Auto vs. Kaulin Mfg | Gordon Auto vs. Tex Ray Industrial Co | Gordon Auto vs. De Licacy Industrial | Gordon Auto vs. Kwong Fong Industries |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |