Correlation Between Dupont De and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Dupont De and Calamos Market 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 Calamos Market 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 Calamos Market Neutral, you can compare the effects of market volatilities on Dupont De and Calamos Market 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 Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Calamos Market.
Diversification Opportunities for Dupont De and Calamos Market
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Calamos is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral 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 Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Dupont De i.e., Dupont De and Calamos Market go up and down completely randomly.
Pair Corralation between Dupont De and Calamos Market
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 13.23 times more return on investment than Calamos Market. However, Dupont De is 13.23 times more volatile than Calamos Market Neutral. It trades about 0.06 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.26 per unit of risk. If you would invest 6,818 in Dupont De Nemours on September 1, 2024 and sell it today you would earn a total of 1,541 from holding Dupont De Nemours or generate 22.6% 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. Calamos Market Neutral
Performance |
| Timeline |
| Dupont De Nemours |
| Calamos Market Neutral |
Dupont De and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Calamos Market
The main advantage of trading using opposite Dupont De and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Calamos Market 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 Calamos Market will offset losses from the drop in Calamos Market's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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