Correlation Between Dupont De and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Dupont De and Eagle Financial 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 Eagle Financial 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 Eagle Financial Services, you can compare the effects of market volatilities on Dupont De and Eagle Financial 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 Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Eagle Financial.
Diversification Opportunities for Dupont De and Eagle Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Eagle is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Eagle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Services 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 Eagle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Financial Services has no effect on the direction of Dupont De i.e., Dupont De and Eagle Financial go up and down completely randomly.
Pair Corralation between Dupont De and Eagle Financial
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.11 times less return on investment than Eagle Financial. But when comparing it to its historical volatility, Dupont De Nemours is 1.06 times less risky than Eagle Financial. It trades about 0.09 of its potential returns per unit of risk. Eagle Financial Services is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,914 in Eagle Financial Services on September 1, 2024 and sell it today you would earn a total of 636.00 from holding Eagle Financial Services or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.83% |
| Values | Daily Returns |
Dupont De Nemours vs. Eagle Financial Services
Performance |
| Timeline |
| Dupont De Nemours |
| Eagle Financial Services |
Dupont De and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Eagle Financial
The main advantage of trading using opposite Dupont De and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Eagle Financial 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 Eagle Financial will offset losses from the drop in Eagle Financial's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Eagle Financial vs. Chesapeake Finl Shs | Eagle Financial vs. Taylor Calvin B | Eagle Financial vs. PSB Holdings | Eagle Financial vs. Farmers Merchants 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets |