Correlation Between Dupont De and Agfa Gevaert
Can any of the company-specific risk be diversified away by investing in both Dupont De and Agfa Gevaert 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 Agfa Gevaert 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 Agfa Gevaert NV, you can compare the effects of market volatilities on Dupont De and Agfa Gevaert 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 Agfa Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Agfa Gevaert.
Diversification Opportunities for Dupont De and Agfa Gevaert
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Agfa is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Agfa Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agfa Gevaert NV 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 Agfa Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agfa Gevaert NV has no effect on the direction of Dupont De i.e., Dupont De and Agfa Gevaert go up and down completely randomly.
Pair Corralation between Dupont De and Agfa Gevaert
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.12 times more return on investment than Agfa Gevaert. However, Dupont De Nemours is 8.36 times less risky than Agfa Gevaert. It trades about -0.06 of its potential returns per unit of risk. Agfa Gevaert NV is currently generating about -0.21 per unit of risk. If you would invest 8,325 in Dupont De Nemours on September 12, 2024 and sell it today you would lose (117.00) from holding Dupont De Nemours or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dupont De Nemours vs. Agfa Gevaert NV
Performance |
| Timeline |
| Dupont De Nemours |
| Agfa Gevaert NV |
Dupont De and Agfa Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Agfa Gevaert
The main advantage of trading using opposite Dupont De and Agfa Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Agfa Gevaert 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 Agfa Gevaert will offset losses from the drop in Agfa Gevaert's long position.| Dupont De vs. Griffon | Dupont De vs. Merck Company | Dupont De vs. Brinker International | Dupont De vs. Alcoa Corp |
| Agfa Gevaert vs. Enerpac Tool Group | Agfa Gevaert vs. Omega Flex | Agfa Gevaert vs. Luxfer Holdings PLC | Agfa Gevaert vs. Gorman Rupp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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