Correlation Between Dupont De and KODEX K
Can any of the company-specific risk be diversified away by investing in both Dupont De and KODEX K 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 KODEX K 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 KODEX K Robot Active, you can compare the effects of market volatilities on Dupont De and KODEX K 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 KODEX K. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and KODEX K.
Diversification Opportunities for Dupont De and KODEX K
Excellent diversification
The 3 months correlation between Dupont and KODEX is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and KODEX K Robot Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KODEX K Robot 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 KODEX K. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KODEX K Robot has no effect on the direction of Dupont De i.e., Dupont De and KODEX K go up and down completely randomly.
Pair Corralation between Dupont De and KODEX K
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the KODEX K. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 2.13 times less risky than KODEX K. The stock trades about -0.19 of its potential returns per unit of risk. The KODEX K Robot Active is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,269,500 in KODEX K Robot Active on October 26, 2024 and sell it today you would earn a total of 126,000 from holding KODEX K Robot Active or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Dupont De Nemours vs. KODEX K Robot Active
Performance |
| Timeline |
| Dupont De Nemours |
| KODEX K Robot |
Dupont De and KODEX K Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and KODEX K
The main advantage of trading using opposite Dupont De and KODEX K positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, KODEX K 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 KODEX K will offset losses from the drop in KODEX K's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| KODEX K vs. KODEX 200LONGKOSDAQ150SHORT Futures | KODEX K vs. KODEX K Renewable Energy | KODEX K vs. KODEX SP500TR | KODEX K vs. KODEX Metaverse Nasdaq |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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