Correlation Between Dupont De and BH Macro
Can any of the company-specific risk be diversified away by investing in both Dupont De and BH Macro 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 BH Macro 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 BH Macro Limited, you can compare the effects of market volatilities on Dupont De and BH Macro 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 BH Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and BH Macro.
Diversification Opportunities for Dupont De and BH Macro
Modest diversification
The 3 months correlation between Dupont and BHMG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and BH Macro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Macro Limited 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 BH Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Macro Limited has no effect on the direction of Dupont De i.e., Dupont De and BH Macro go up and down completely randomly.
Pair Corralation between Dupont De and BH Macro
Allowing for the 90-day total investment horizon Dupont De is expected to generate 2.31 times less return on investment than BH Macro. In addition to that, Dupont De is 1.08 times more volatile than BH Macro Limited. It trades about 0.03 of its total potential returns per unit of risk. BH Macro Limited is currently generating about 0.08 per unit of volatility. If you would invest 36,200 in BH Macro Limited on September 1, 2024 and sell it today you would earn a total of 4,300 from holding BH Macro Limited or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Dupont De Nemours vs. BH Macro Limited
Performance |
| Timeline |
| Dupont De Nemours |
| BH Macro Limited |
Dupont De and BH Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and BH Macro
The main advantage of trading using opposite Dupont De and BH Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, BH Macro 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 BH Macro will offset losses from the drop in BH Macro's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| BH Macro vs. Toyota Motor Corp | BH Macro vs. SoftBank Group Corp | BH Macro vs. OTP Bank Nyrt | BH Macro vs. Las Vegas Sands |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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