Correlation Between Dupont De and Penghua Shenzhen
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By analyzing existing cross correlation between Dupont De Nemours and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Dupont De and Penghua Shenzhen 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 Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Penghua Shenzhen.
Diversification Opportunities for Dupont De and Penghua Shenzhen
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Penghua is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy 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 Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Dupont De i.e., Dupont De and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Dupont De and Penghua Shenzhen
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.66 times more return on investment than Penghua Shenzhen. However, Dupont De is 1.66 times more volatile than Penghua Shenzhen Energy. It trades about 0.11 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.08 per unit of risk. If you would invest 6,105 in Dupont De Nemours on August 29, 2024 and sell it today you would earn a total of 2,293 from holding Dupont De Nemours or generate 37.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.78% |
| Values | Daily Returns |
Dupont De Nemours vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Dupont De Nemours |
| Penghua Shenzhen Energy |
Dupont De and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Penghua Shenzhen
The main advantage of trading using opposite Dupont De and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Dupont De vs. Direxion Daily FTSE | Dupont De vs. Collegium Pharmaceutical | Dupont De vs. KKR Co LP | Dupont De vs. iShares Dividend and |
| Penghua Shenzhen vs. Zhongtong Guomai Communication | Penghua Shenzhen vs. Bus Online Co | Penghua Shenzhen vs. Guangzhou Dongfang Hotel | Penghua Shenzhen vs. Eastern Communications 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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