Correlation Between Dupont De and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both Dupont De and Amtran Technology 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 Amtran Technology 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 Amtran Technology Co, you can compare the effects of market volatilities on Dupont De and Amtran Technology 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 Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Amtran Technology.
Diversification Opportunities for Dupont De and Amtran Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Amtran is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology 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 Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of Dupont De i.e., Dupont De and Amtran Technology go up and down completely randomly.
Pair Corralation between Dupont De and Amtran Technology
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.44 times more return on investment than Amtran Technology. However, Dupont De Nemours is 2.27 times less risky than Amtran Technology. It trades about 0.03 of its potential returns per unit of risk. Amtran Technology Co is currently generating about 0.0 per unit of risk. If you would invest 8,026 in Dupont De Nemours on August 30, 2024 and sell it today you would earn a total of 364.00 from holding Dupont De Nemours or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Amtran Technology Co
Performance |
| Timeline |
| Dupont De Nemours |
| Amtran Technology |
Dupont De and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Amtran Technology
The main advantage of trading using opposite Dupont De and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Amtran Technology vs. Yulon Finance Corp | Amtran Technology vs. Taiwan Secom Co | Amtran Technology vs. Great Wall Enterprise |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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