Correlation Between Dupont De and Ningbo Thermal
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By analyzing existing cross correlation between Dupont De Nemours and Ningbo Thermal Power, you can compare the effects of market volatilities on Dupont De and Ningbo Thermal 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 Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Ningbo Thermal.
Diversification Opportunities for Dupont De and Ningbo Thermal
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Ningbo is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power 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 Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Dupont De i.e., Dupont De and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Dupont De and Ningbo Thermal
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.36 times less return on investment than Ningbo Thermal. But when comparing it to its historical volatility, Dupont De Nemours is 1.74 times less risky than Ningbo Thermal. It trades about 0.06 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 332.00 in Ningbo Thermal Power on November 3, 2024 and sell it today you would earn a total of 65.00 from holding Ningbo Thermal Power or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.76% |
| Values | Daily Returns |
Dupont De Nemours vs. Ningbo Thermal Power
Performance |
| Timeline |
| Dupont De Nemours |
| Ningbo Thermal Power |
Dupont De and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Ningbo Thermal
The main advantage of trading using opposite Dupont De and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Ningbo Thermal vs. Thunder Software Technology | Ningbo Thermal vs. Wuhan Yangtze Communication | Ningbo Thermal vs. Fibocom Wireless | Ningbo Thermal vs. Jiangsu Hoperun Software |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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