Correlation Between Dupont De and First Mining
Can any of the company-specific risk be diversified away by investing in both Dupont De and First Mining 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 Mining 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 Mining Gold, you can compare the effects of market volatilities on Dupont De and First Mining 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 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and First Mining.
Diversification Opportunities for Dupont De and First Mining
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and First is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and First Mining Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mining Gold 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 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mining Gold has no effect on the direction of Dupont De i.e., Dupont De and First Mining go up and down completely randomly.
Pair Corralation between Dupont De and First Mining
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.35 times more return on investment than First Mining. However, Dupont De Nemours is 2.84 times less risky than First Mining. It trades about 0.05 of its potential returns per unit of risk. First Mining Gold is currently generating about -0.04 per unit of risk. If you would invest 8,250 in Dupont De Nemours on September 2, 2024 and sell it today you would earn a total of 109.00 from holding Dupont De Nemours or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. First Mining Gold
Performance |
| Timeline |
| Dupont De Nemours |
| First Mining Gold |
Dupont De and First Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and First Mining
The main advantage of trading using opposite Dupont De and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, First Mining 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 Mining will offset losses from the drop in First Mining's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| First Mining vs. South32 Limited | First Mining vs. NioCorp Developments Ltd | First Mining vs. HUMANA INC | First Mining vs. SCOR PK |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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