Correlation Between Dupont De and First Eagle
Can any of the company-specific risk be diversified away by investing in both Dupont De and First Eagle 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 First Eagle 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 First Eagle Fund, you can compare the effects of market volatilities on Dupont De and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and First Eagle.
Diversification Opportunities for Dupont De and First Eagle
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dupont and First is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of Dupont De i.e., Dupont De and First Eagle go up and down completely randomly.
Pair Corralation between Dupont De and First Eagle
Allowing for the 90-day total investment horizon Dupont De is expected to generate 17.2 times less return on investment than First Eagle. In addition to that, Dupont De is 1.64 times more volatile than First Eagle Fund. It trades about 0.01 of its total potential returns per unit of risk. First Eagle Fund is currently generating about 0.33 per unit of volatility. If you would invest 2,700 in First Eagle Fund on November 1, 2024 and sell it today you would earn a total of 125.00 from holding First Eagle Fund or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. First Eagle Fund
Performance |
| Timeline |
| Dupont De Nemours |
| First Eagle Fund |
Dupont De and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and First Eagle
The main advantage of trading using opposite Dupont De and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Dupont De vs. International Flavors Fragrances | Dupont De vs. Air Products and | Dupont De vs. PPG Industries | Dupont De vs. Linde plc Ordinary |
| First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Fund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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