Correlation Between Dupont De and Julius Baer
Can any of the company-specific risk be diversified away by investing in both Dupont De and Julius Baer 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 Julius Baer 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 Julius Baer Gruppe, you can compare the effects of market volatilities on Dupont De and Julius Baer 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 Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Julius Baer.
Diversification Opportunities for Dupont De and Julius Baer
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Julius is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe 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 Julius Baer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Baer Gruppe has no effect on the direction of Dupont De i.e., Dupont De and Julius Baer go up and down completely randomly.
Pair Corralation between Dupont De and Julius Baer
Allowing for the 90-day total investment horizon Dupont De is expected to generate 5.57 times less return on investment than Julius Baer. But when comparing it to its historical volatility, Dupont De Nemours is 1.11 times less risky than Julius Baer. It trades about 0.03 of its potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,492 in Julius Baer Gruppe on August 28, 2024 and sell it today you would earn a total of 256.00 from holding Julius Baer Gruppe or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Julius Baer Gruppe
Performance |
| Timeline |
| Dupont De Nemours |
| Julius Baer Gruppe |
Dupont De and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Julius Baer
The main advantage of trading using opposite Dupont De and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Julius Baer 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 Julius Baer will offset losses from the drop in Julius Baer's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Julius Baer vs. Bachem Holding AG | Julius Baer vs. Kudelski | Julius Baer vs. Alpine Select AG | Julius Baer vs. BB Biotech AG |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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