Correlation Between Dupont De and Ellomay Capital
Can any of the company-specific risk be diversified away by investing in both Dupont De and Ellomay Capital 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 Ellomay Capital 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 Ellomay Capital, you can compare the effects of market volatilities on Dupont De and Ellomay Capital 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 Ellomay Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Ellomay Capital.
Diversification Opportunities for Dupont De and Ellomay Capital
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Ellomay is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Ellomay Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellomay Capital 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 Ellomay Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellomay Capital has no effect on the direction of Dupont De i.e., Dupont De and Ellomay Capital go up and down completely randomly.
Pair Corralation between Dupont De and Ellomay Capital
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.34 times less return on investment than Ellomay Capital. But when comparing it to its historical volatility, Dupont De Nemours is 2.16 times less risky than Ellomay Capital. It trades about 0.03 of its potential returns per unit of risk. Ellomay Capital is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Ellomay Capital on August 24, 2024 and sell it today you would earn a total of 102.00 from holding Ellomay Capital or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.98% |
| Values | Daily Returns |
Dupont De Nemours vs. Ellomay Capital
Performance |
| Timeline |
| Dupont De Nemours |
| Ellomay Capital |
Dupont De and Ellomay Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Ellomay Capital
The main advantage of trading using opposite Dupont De and Ellomay Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Ellomay Capital 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 Ellomay Capital will offset losses from the drop in Ellomay Capital's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Renew Energy Global | Ellomay Capital vs. Clearway Energy Class | Ellomay Capital vs. Excelerate Energy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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