Correlation Between Dupont De and Amerant Bancorp
Can any of the company-specific risk be diversified away by investing in both Dupont De and Amerant Bancorp 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 Amerant Bancorp 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 Amerant Bancorp, you can compare the effects of market volatilities on Dupont De and Amerant Bancorp 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 Amerant Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Amerant Bancorp.
Diversification Opportunities for Dupont De and Amerant Bancorp
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Amerant is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Amerant Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amerant Bancorp 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 Amerant Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amerant Bancorp has no effect on the direction of Dupont De i.e., Dupont De and Amerant Bancorp go up and down completely randomly.
Pair Corralation between Dupont De and Amerant Bancorp
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.59 times more return on investment than Amerant Bancorp. However, Dupont De Nemours is 1.69 times less risky than Amerant Bancorp. It trades about 0.11 of its potential returns per unit of risk. Amerant Bancorp is currently generating about 0.04 per unit of risk. If you would invest 6,105 in Dupont De Nemours on August 29, 2024 and sell it today you would earn a total of 2,293 from holding Dupont De Nemours or generate 37.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Amerant Bancorp
Performance |
| Timeline |
| Dupont De Nemours |
| Amerant Bancorp |
Dupont De and Amerant Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Amerant Bancorp
The main advantage of trading using opposite Dupont De and Amerant Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Amerant Bancorp 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 Amerant Bancorp will offset losses from the drop in Amerant Bancorp's long position.| Dupont De vs. Direxion Daily FTSE | Dupont De vs. Collegium Pharmaceutical | Dupont De vs. KKR Co LP | Dupont De vs. iShares Dividend and |
| Amerant Bancorp vs. Affinity Bancshares | Amerant Bancorp vs. Southern California Bancorp | Amerant Bancorp vs. Auburn National Bancorporation | Amerant Bancorp vs. BayCom Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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