Correlation Between Dupont De and Sigurd Microelectronics
Can any of the company-specific risk be diversified away by investing in both Dupont De and Sigurd Microelectronics 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 Sigurd Microelectronics 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 Sigurd Microelectronics Corp, you can compare the effects of market volatilities on Dupont De and Sigurd Microelectronics 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 Sigurd Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Sigurd Microelectronics.
Diversification Opportunities for Dupont De and Sigurd Microelectronics
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Sigurd is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Sigurd Microelectronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigurd Microelectronics 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 Sigurd Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigurd Microelectronics has no effect on the direction of Dupont De i.e., Dupont De and Sigurd Microelectronics go up and down completely randomly.
Pair Corralation between Dupont De and Sigurd Microelectronics
Allowing for the 90-day total investment horizon Dupont De is expected to generate 2.0 times less return on investment than Sigurd Microelectronics. But when comparing it to its historical volatility, Dupont De Nemours is 1.02 times less risky than Sigurd Microelectronics. It trades about 0.03 of its potential returns per unit of risk. Sigurd Microelectronics Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,798 in Sigurd Microelectronics Corp on August 27, 2024 and sell it today you would earn a total of 2,352 from holding Sigurd Microelectronics Corp or generate 49.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
Dupont De Nemours vs. Sigurd Microelectronics Corp
Performance |
| Timeline |
| Dupont De Nemours |
| Sigurd Microelectronics |
Dupont De and Sigurd Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Sigurd Microelectronics
The main advantage of trading using opposite Dupont De and Sigurd Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Sigurd Microelectronics 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 Sigurd Microelectronics will offset losses from the drop in Sigurd Microelectronics' long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Sigurd Microelectronics vs. Novatek Microelectronics Corp | Sigurd Microelectronics vs. Quanta Computer | Sigurd Microelectronics vs. United Microelectronics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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