Correlation Between Dupont De and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Dupont De and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on Dupont De and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Mainstay Epoch.
Diversification Opportunities for Dupont De and Mainstay Epoch
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dupont and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Dupont De i.e., Dupont De and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Dupont De and Mainstay Epoch
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.07 times less return on investment than Mainstay Epoch. In addition to that, Dupont De is 2.49 times more volatile than Mainstay Epoch Global. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.11 per unit of volatility. If you would invest 1,905 in Mainstay Epoch Global on August 31, 2024 and sell it today you would earn a total of 541.00 from holding Mainstay Epoch Global or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Dupont De Nemours vs. Mainstay Epoch Global
Performance |
| Timeline |
| Dupont De Nemours |
| Mainstay Epoch Global |
Dupont De and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Mainstay Epoch
The main advantage of trading using opposite Dupont De and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc | Dupont De vs. Sherwin Williams Co |
| Mainstay Epoch vs. The Gabelli Small | Mainstay Epoch vs. American Century Diversified | Mainstay Epoch vs. Jhancock Diversified Macro | Mainstay Epoch vs. Harbor Diversified International |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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