Correlation Between Dupont De and Lyxor Ibex
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lyxor Ibex 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 Lyxor Ibex 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 Lyxor Ibex 35, you can compare the effects of market volatilities on Dupont De and Lyxor Ibex 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 Lyxor Ibex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lyxor Ibex.
Diversification Opportunities for Dupont De and Lyxor Ibex
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Lyxor is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lyxor Ibex 35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Ibex 35 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 Lyxor Ibex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Ibex 35 has no effect on the direction of Dupont De i.e., Dupont De and Lyxor Ibex go up and down completely randomly.
Pair Corralation between Dupont De and Lyxor Ibex
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.07 times more return on investment than Lyxor Ibex. However, Dupont De is 1.07 times more volatile than Lyxor Ibex 35. It trades about 0.16 of its potential returns per unit of risk. Lyxor Ibex 35 is currently generating about -0.46 per unit of risk. If you would invest 7,666 in Dupont De Nemours on November 28, 2024 and sell it today you would earn a total of 480.00 from holding Dupont De Nemours or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Lyxor Ibex 35
Performance |
| Timeline |
| Dupont De Nemours |
| Lyxor Ibex 35 |
Dupont De and Lyxor Ibex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lyxor Ibex
The main advantage of trading using opposite Dupont De and Lyxor Ibex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lyxor Ibex 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 Lyxor Ibex will offset losses from the drop in Lyxor Ibex's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |