Correlation Between Dupont De and Continental Holdings
Can any of the company-specific risk be diversified away by investing in both Dupont De and Continental Holdings 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 Continental Holdings 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 Continental Holdings Corp, you can compare the effects of market volatilities on Dupont De and Continental Holdings 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 Continental Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Continental Holdings.
Diversification Opportunities for Dupont De and Continental Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Continental is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Continental Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Holdings Corp 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 Continental Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Holdings Corp has no effect on the direction of Dupont De i.e., Dupont De and Continental Holdings go up and down completely randomly.
Pair Corralation between Dupont De and Continental Holdings
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.63 times more return on investment than Continental Holdings. However, Dupont De Nemours is 1.58 times less risky than Continental Holdings. It trades about 0.04 of its potential returns per unit of risk. Continental Holdings Corp is currently generating about -0.06 per unit of risk. If you would invest 7,989 in Dupont De Nemours on September 3, 2024 and sell it today you would earn a total of 383.00 from holding Dupont De Nemours or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Dupont De Nemours vs. Continental Holdings Corp
Performance |
| Timeline |
| Dupont De Nemours |
| Continental Holdings Corp |
Dupont De and Continental Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Continental Holdings
The main advantage of trading using opposite Dupont De and Continental Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Continental Holdings 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 Continental Holdings will offset losses from the drop in Continental Holdings' long position.| Dupont De vs. SPACE | Dupont De vs. Bayview Acquisition Corp | Dupont De vs. T Rowe Price | Dupont De vs. Ampleforth |
| Continental Holdings vs. BES Engineering Co | Continental Holdings vs. Chien Kuo Construction | Continental Holdings vs. Hung Sheng Construction | Continental Holdings vs. YungShin Global Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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