Correlation Between Dupont De and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both Dupont De and BCB Bancorp 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 BCB Bancorp 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 BCB Bancorp, you can compare the effects of market volatilities on Dupont De and BCB Bancorp 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 BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and BCB Bancorp.
Diversification Opportunities for Dupont De and BCB Bancorp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and BCB is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp 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 BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of Dupont De i.e., Dupont De and BCB Bancorp go up and down completely randomly.
Pair Corralation between Dupont De and BCB Bancorp
Allowing for the 90-day total investment horizon Dupont De is expected to generate 60.79 times less return on investment than BCB Bancorp. But when comparing it to its historical volatility, Dupont De Nemours is 1.35 times less risky than BCB Bancorp. It trades about 0.01 of its potential returns per unit of risk. BCB Bancorp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,148 in BCB Bancorp on August 26, 2024 and sell it today you would earn a total of 202.00 from holding BCB Bancorp or generate 17.6% 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. BCB Bancorp
Performance |
| Timeline |
| Dupont De Nemours |
| BCB Bancorp |
Dupont De and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and BCB Bancorp
The main advantage of trading using opposite Dupont De and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, BCB Bancorp 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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