Correlation Between Dupont De and Elicera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Dupont De and Elicera Therapeutics 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 Elicera Therapeutics 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 Elicera Therapeutics AB, you can compare the effects of market volatilities on Dupont De and Elicera Therapeutics 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 Elicera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Elicera Therapeutics.
Diversification Opportunities for Dupont De and Elicera Therapeutics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Elicera is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Elicera Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicera Therapeutics 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 Elicera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicera Therapeutics has no effect on the direction of Dupont De i.e., Dupont De and Elicera Therapeutics go up and down completely randomly.
Pair Corralation between Dupont De and Elicera Therapeutics
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Elicera Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 3.93 times less risky than Elicera Therapeutics. The stock trades about -0.6 of its potential returns per unit of risk. The Elicera Therapeutics AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 167.00 in Elicera Therapeutics AB on October 9, 2024 and sell it today you would earn a total of 22.00 from holding Elicera Therapeutics AB or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Dupont De Nemours vs. Elicera Therapeutics AB
Performance |
| Timeline |
| Dupont De Nemours |
| Elicera Therapeutics |
Dupont De and Elicera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Elicera Therapeutics
The main advantage of trading using opposite Dupont De and Elicera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Elicera Therapeutics 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 Elicera Therapeutics will offset losses from the drop in Elicera Therapeutics' long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Elicera Therapeutics vs. Cantargia AB | Elicera Therapeutics vs. Ascelia Pharma AB | Elicera Therapeutics vs. Cyxone AB | Elicera Therapeutics vs. BioArctic AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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