Correlation Between Dupont De and Ascendis Pharma
Can any of the company-specific risk be diversified away by investing in both Dupont De and Ascendis Pharma 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 Ascendis Pharma 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 Ascendis Pharma AS, you can compare the effects of market volatilities on Dupont De and Ascendis Pharma 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 Ascendis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Ascendis Pharma.
Diversification Opportunities for Dupont De and Ascendis Pharma
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Ascendis is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma 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 Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Dupont De i.e., Dupont De and Ascendis Pharma go up and down completely randomly.
Pair Corralation between Dupont De and Ascendis Pharma
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Ascendis Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 1.3 times less risky than Ascendis Pharma. The stock trades about -0.03 of its potential returns per unit of risk. The Ascendis Pharma AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12,769 in Ascendis Pharma AS on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Ascendis Pharma AS or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Ascendis Pharma AS
Performance |
| Timeline |
| Dupont De Nemours |
| Ascendis Pharma AS |
Dupont De and Ascendis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Ascendis Pharma
The main advantage of trading using opposite Dupont De and Ascendis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Ascendis Pharma 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 Ascendis Pharma will offset losses from the drop in Ascendis Pharma's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| Ascendis Pharma vs. Lyra Therapeutics | Ascendis Pharma vs. Hookipa Pharma | Ascendis Pharma vs. Cingulate Warrants | Ascendis Pharma vs. SAB Biotherapeutics |
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 .
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