Correlation Between Dupont De and Aurskog Sparebank
Can any of the company-specific risk be diversified away by investing in both Dupont De and Aurskog Sparebank 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 Aurskog Sparebank 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 Aurskog Sparebank, you can compare the effects of market volatilities on Dupont De and Aurskog Sparebank 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 Aurskog Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Aurskog Sparebank.
Diversification Opportunities for Dupont De and Aurskog Sparebank
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Aurskog is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Aurskog Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurskog Sparebank 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 Aurskog Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurskog Sparebank has no effect on the direction of Dupont De i.e., Dupont De and Aurskog Sparebank go up and down completely randomly.
Pair Corralation between Dupont De and Aurskog Sparebank
Allowing for the 90-day total investment horizon Dupont De is expected to generate 7.93 times less return on investment than Aurskog Sparebank. In addition to that, Dupont De is 1.39 times more volatile than Aurskog Sparebank. It trades about 0.01 of its total potential returns per unit of risk. Aurskog Sparebank is currently generating about 0.06 per unit of volatility. If you would invest 23,300 in Aurskog Sparebank on August 29, 2024 and sell it today you would earn a total of 295.00 from holding Aurskog Sparebank or generate 1.27% 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. Aurskog Sparebank
Performance |
| Timeline |
| Dupont De Nemours |
| Aurskog Sparebank |
Dupont De and Aurskog Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Aurskog Sparebank
The main advantage of trading using opposite Dupont De and Aurskog Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Aurskog Sparebank 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 Aurskog Sparebank will offset losses from the drop in Aurskog Sparebank's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |