Correlation Between Dupont De and Jinlong Machinery
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By analyzing existing cross correlation between Dupont De Nemours and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Dupont De and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Jinlong Machinery.
Diversification Opportunities for Dupont De and Jinlong Machinery
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dupont and Jinlong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Dupont De i.e., Dupont De and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Dupont De and Jinlong Machinery
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.33 times more return on investment than Jinlong Machinery. However, Dupont De Nemours is 3.02 times less risky than Jinlong Machinery. It trades about -0.17 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.11 per unit of risk. If you would invest 8,405 in Dupont De Nemours on October 26, 2024 and sell it today you would lose (584.00) from holding Dupont De Nemours or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.7% |
| Values | Daily Returns |
Dupont De Nemours vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Dupont De Nemours |
| Jinlong Machinery |
Dupont De and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Jinlong Machinery
The main advantage of trading using opposite Dupont De and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Jinlong Machinery vs. China State Construction | Jinlong Machinery vs. Poly Real Estate | Jinlong Machinery vs. China Vanke Co | Jinlong Machinery vs. China Merchants Shekou |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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