Correlation Between Dupont De and Chesapeake Energy
Can any of the company-specific risk be diversified away by investing in both Dupont De and Chesapeake Energy 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 Chesapeake Energy 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 Chesapeake Energy, you can compare the effects of market volatilities on Dupont De and Chesapeake Energy 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 Chesapeake Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Chesapeake Energy.
Diversification Opportunities for Dupont De and Chesapeake Energy
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Chesapeake is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Chesapeake Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Energy 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 Chesapeake Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Energy has no effect on the direction of Dupont De i.e., Dupont De and Chesapeake Energy go up and down completely randomly.
Pair Corralation between Dupont De and Chesapeake Energy
If you would invest 8,391 in Dupont De Nemours on August 29, 2024 and sell it today you would lose (1.00) from holding Dupont De Nemours or give up 0.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Dupont De Nemours vs. Chesapeake Energy
Performance |
| Timeline |
| Dupont De Nemours |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Dupont De and Chesapeake Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Chesapeake Energy
The main advantage of trading using opposite Dupont De and Chesapeake Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Chesapeake Energy 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 Chesapeake Energy will offset losses from the drop in Chesapeake Energy's long position.| Dupont De vs. Direxion Daily FTSE | Dupont De vs. Collegium Pharmaceutical | Dupont De vs. KKR Co LP | Dupont De vs. iShares Dividend and |
| Chesapeake Energy vs. NGL Energy Partners | Chesapeake Energy vs. Global Partners LP | Chesapeake Energy vs. Crescent Energy Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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