Correlation Between Dupont De and Jiangsu Xinning
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By analyzing existing cross correlation between Dupont De Nemours and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Dupont De and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Jiangsu Xinning.
Diversification Opportunities for Dupont De and Jiangsu Xinning
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Jiangsu is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Dupont De i.e., Dupont De and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Dupont De and Jiangsu Xinning
Allowing for the 90-day total investment horizon Dupont De is expected to generate 2.57 times less return on investment than Jiangsu Xinning. But when comparing it to its historical volatility, Dupont De Nemours is 3.23 times less risky than Jiangsu Xinning. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Jiangsu Xinning Modern on August 25, 2024 and sell it today you would lose (5.00) from holding Jiangsu Xinning Modern or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.76% |
| Values | Daily Returns |
Dupont De Nemours vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Dupont De Nemours |
| Jiangsu Xinning Modern |
Dupont De and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Jiangsu Xinning
The main advantage of trading using opposite Dupont De and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Jiangsu Xinning vs. Sportsoul Co Ltd | Jiangsu Xinning vs. Chengdu Spaceon Electronics | Jiangsu Xinning vs. Shandong Longquan Pipeline | Jiangsu Xinning vs. Shanghai CEO Environmental |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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