Correlation Between Dupont De and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dupont De Nemours and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Dupont De and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Hubei Xingfa.
Diversification Opportunities for Dupont De and Hubei Xingfa
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dupont and Hubei is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Dupont De i.e., Dupont De and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Dupont De and Hubei Xingfa
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Hubei Xingfa. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 1.85 times less risky than Hubei Xingfa. The stock trades about -0.02 of its potential returns per unit of risk. The Hubei Xingfa Chemicals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,263 in Hubei Xingfa Chemicals on August 25, 2024 and sell it today you would earn a total of 24.00 from holding Hubei Xingfa Chemicals or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Dupont De Nemours |
| Hubei Xingfa Chemicals |
Dupont De and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Hubei Xingfa
The main advantage of trading using opposite Dupont De and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| Hubei Xingfa vs. Guangzhou Ruoyuchen Information | Hubei Xingfa vs. Northking Information Technology | Hubei Xingfa vs. Tonghua Grape Wine | Hubei Xingfa vs. Xiamen Goldenhome Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |