Correlation Between Dupont De and Wuxi Xinhongye
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By analyzing existing cross correlation between Dupont De Nemours and Wuxi Xinhongye Wire, you can compare the effects of market volatilities on Dupont De and Wuxi Xinhongye 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 Wuxi Xinhongye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Wuxi Xinhongye.
Diversification Opportunities for Dupont De and Wuxi Xinhongye
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Wuxi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Wuxi Xinhongye Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xinhongye Wire 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 Wuxi Xinhongye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xinhongye Wire has no effect on the direction of Dupont De i.e., Dupont De and Wuxi Xinhongye go up and down completely randomly.
Pair Corralation between Dupont De and Wuxi Xinhongye
Allowing for the 90-day total investment horizon Dupont De is expected to generate 3.21 times less return on investment than Wuxi Xinhongye. But when comparing it to its historical volatility, Dupont De Nemours is 1.85 times less risky than Wuxi Xinhongye. It trades about 0.16 of its potential returns per unit of risk. Wuxi Xinhongye Wire is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,841 in Wuxi Xinhongye Wire on November 28, 2024 and sell it today you would earn a total of 430.00 from holding Wuxi Xinhongye Wire or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
Dupont De Nemours vs. Wuxi Xinhongye Wire
Performance |
| Timeline |
| Dupont De Nemours |
| Wuxi Xinhongye Wire |
Dupont De and Wuxi Xinhongye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Wuxi Xinhongye
The main advantage of trading using opposite Dupont De and Wuxi Xinhongye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Wuxi Xinhongye 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 Wuxi Xinhongye will offset losses from the drop in Wuxi Xinhongye's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Wuxi Xinhongye vs. Shaanxi Meineng Clean | Wuxi Xinhongye vs. China Eastern Airlines | Wuxi Xinhongye vs. Anji Foodstuff Co | Wuxi Xinhongye vs. Cansino Biologics |
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.
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