Correlation Between Dupont De and Amundi Stoxx
Can any of the company-specific risk be diversified away by investing in both Dupont De and Amundi Stoxx 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 Amundi Stoxx 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 Amundi Stoxx Europe, you can compare the effects of market volatilities on Dupont De and Amundi Stoxx 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 Amundi Stoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Amundi Stoxx.
Diversification Opportunities for Dupont De and Amundi Stoxx
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Amundi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Amundi Stoxx Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Stoxx Europe 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 Amundi Stoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Stoxx Europe has no effect on the direction of Dupont De i.e., Dupont De and Amundi Stoxx go up and down completely randomly.
Pair Corralation between Dupont De and Amundi Stoxx
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 2.04 times more return on investment than Amundi Stoxx. However, Dupont De is 2.04 times more volatile than Amundi Stoxx Europe. It trades about 0.09 of its potential returns per unit of risk. Amundi Stoxx Europe is currently generating about 0.04 per unit of risk. If you would invest 8,148 in Dupont De Nemours on September 4, 2024 and sell it today you would earn a total of 224.00 from holding Dupont De Nemours or generate 2.75% 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. Amundi Stoxx Europe
Performance |
| Timeline |
| Dupont De Nemours |
| Amundi Stoxx Europe |
Dupont De and Amundi Stoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Amundi Stoxx
The main advantage of trading using opposite Dupont De and Amundi Stoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Amundi Stoxx 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 Amundi Stoxx will offset losses from the drop in Amundi Stoxx's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Amundi Stoxx vs. Amundi Index Solutions | Amundi Stoxx vs. Manitou BF SA | Amundi Stoxx vs. 21Shares Polkadot ETP | Amundi Stoxx vs. Ekinops SA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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