Correlation Between Dupont De and Arcelik AS
Can any of the company-specific risk be diversified away by investing in both Dupont De and Arcelik 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 Arcelik 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 Arcelik AS, you can compare the effects of market volatilities on Dupont De and Arcelik 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 Arcelik AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Arcelik AS.
Diversification Opportunities for Dupont De and Arcelik AS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Arcelik is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Arcelik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelik 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 Arcelik AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelik AS has no effect on the direction of Dupont De i.e., Dupont De and Arcelik AS go up and down completely randomly.
Pair Corralation between Dupont De and Arcelik AS
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.37 times less return on investment than Arcelik AS. But when comparing it to its historical volatility, Dupont De Nemours is 1.63 times less risky than Arcelik AS. It trades about 0.04 of its potential returns per unit of risk. Arcelik AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,599 in Arcelik AS on August 31, 2024 and sell it today you would earn a total of 2,741 from holding Arcelik AS or generate 23.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.93% |
| Values | Daily Returns |
Dupont De Nemours vs. Arcelik AS
Performance |
| Timeline |
| Dupont De Nemours |
| Arcelik AS |
Dupont De and Arcelik AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Arcelik AS
The main advantage of trading using opposite Dupont De and Arcelik AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Arcelik 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 Arcelik AS will offset losses from the drop in Arcelik AS's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc | Dupont De vs. Sherwin Williams Co |
| Arcelik AS vs. Ford Otomotiv Sanayi | Arcelik AS vs. Eregli Demir ve | Arcelik AS vs. Turkiye Petrol Rafinerileri | Arcelik AS vs. Turkiye Sise ve |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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