Correlation Between Dupont De and American Mutual
Can any of the company-specific risk be diversified away by investing in both Dupont De and American Mutual 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 American Mutual 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 American Mutual Fund, you can compare the effects of market volatilities on Dupont De and American Mutual 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 American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and American Mutual.
Diversification Opportunities for Dupont De and American Mutual
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dupont and American is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual 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 American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Dupont De i.e., Dupont De and American Mutual go up and down completely randomly.
Pair Corralation between Dupont De and American Mutual
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.26 times less return on investment than American Mutual. In addition to that, Dupont De is 1.96 times more volatile than American Mutual Fund. It trades about 0.13 of its total potential returns per unit of risk. American Mutual Fund is currently generating about 0.32 per unit of volatility. If you would invest 5,552 in American Mutual Fund on November 4, 2024 and sell it today you would earn a total of 199.00 from holding American Mutual Fund or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. American Mutual Fund
Performance |
| Timeline |
| Dupont De Nemours |
| American Mutual |
Dupont De and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and American Mutual
The main advantage of trading using opposite Dupont De and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| American Mutual vs. Gmo International Equity | American Mutual vs. Aqr Long Short Equity | American Mutual vs. Calvert International Equity | American Mutual vs. Ultra Short Fixed Income |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |