Correlation Between Dupont De and Agillic AS
Can any of the company-specific risk be diversified away by investing in both Dupont De and Agillic AS 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 Agillic AS 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 Agillic AS, you can compare the effects of market volatilities on Dupont De and Agillic AS 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 Agillic AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Agillic AS.
Diversification Opportunities for Dupont De and Agillic AS
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Agillic is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS 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 Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of Dupont De i.e., Dupont De and Agillic AS go up and down completely randomly.
Pair Corralation between Dupont De and Agillic AS
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.94 times more return on investment than Agillic AS. However, Dupont De Nemours is 1.06 times less risky than Agillic AS. It trades about 0.09 of its potential returns per unit of risk. Agillic AS is currently generating about -0.16 per unit of risk. If you would invest 8,148 in Dupont De Nemours on September 4, 2024 and sell it today you would earn a total of 224.00 from holding Dupont De Nemours or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dupont De Nemours vs. Agillic AS
Performance |
| Timeline |
| Dupont De Nemours |
| Agillic AS |
Dupont De and Agillic AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Agillic AS
The main advantage of trading using opposite Dupont De and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Agillic AS 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 Agillic AS will offset losses from the drop in Agillic AS's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Agillic AS vs. Alefarm Brewing AS | Agillic AS vs. Embla Medical hf | Agillic AS vs. Vestjysk Bank AS | Agillic AS vs. Groenlandsbanken AS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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