Correlation Between Dupont De and Jean
Can any of the company-specific risk be diversified away by investing in both Dupont De and Jean 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 Jean 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 Jean Co, you can compare the effects of market volatilities on Dupont De and Jean 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 Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Jean.
Diversification Opportunities for Dupont De and Jean
Very good diversification
The 3 months correlation between Dupont and Jean is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jean Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jean 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 Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jean has no effect on the direction of Dupont De i.e., Dupont De and Jean go up and down completely randomly.
Pair Corralation between Dupont De and Jean
Allowing for the 90-day total investment horizon Dupont De is expected to generate 2.88 times less return on investment than Jean. But when comparing it to its historical volatility, Dupont De Nemours is 1.59 times less risky than Jean. It trades about 0.04 of its potential returns per unit of risk. Jean Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,375 in Jean Co on September 4, 2024 and sell it today you would earn a total of 1,245 from holding Jean Co or generate 90.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.97% |
| Values | Daily Returns |
Dupont De Nemours vs. Jean Co
Performance |
| Timeline |
| Dupont De Nemours |
| Jean |
Dupont De and Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Jean
The main advantage of trading using opposite Dupont De and Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Jean 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 Jean will offset losses from the drop in Jean's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Jean vs. Shuttle | Jean vs. Amtran Technology Co | Jean vs. AVerMedia Technologies | Jean vs. Gigastorage Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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