Correlation Between Dupont De and Bactiquant
Can any of the company-specific risk be diversified away by investing in both Dupont De and Bactiquant 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 Bactiquant 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 Bactiquant AS, you can compare the effects of market volatilities on Dupont De and Bactiquant 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 Bactiquant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Bactiquant.
Diversification Opportunities for Dupont De and Bactiquant
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Bactiquant is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Bactiquant AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiquant 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 Bactiquant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiquant AS has no effect on the direction of Dupont De i.e., Dupont De and Bactiquant go up and down completely randomly.
Pair Corralation between Dupont De and Bactiquant
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.4 times more return on investment than Bactiquant. However, Dupont De Nemours is 2.51 times less risky than Bactiquant. It trades about 0.03 of its potential returns per unit of risk. Bactiquant AS is currently generating about -0.1 per unit of risk. If you would invest 8,299 in Dupont De Nemours on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Dupont De Nemours or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dupont De Nemours vs. Bactiquant AS
Performance |
| Timeline |
| Dupont De Nemours |
| Bactiquant AS |
Dupont De and Bactiquant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Bactiquant
The main advantage of trading using opposite Dupont De and Bactiquant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Bactiquant 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 Bactiquant will offset losses from the drop in Bactiquant's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Bactiquant vs. Sparinvest INDEX Globale | Bactiquant vs. Bavarian Nordic | Bactiquant vs. Investeringsselskabet Luxor AS | Bactiquant vs. cBrain AS |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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