Correlation Between Dupont De and Franklin Focused
Can any of the company-specific risk be diversified away by investing in both Dupont De and Franklin Focused 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 Franklin Focused 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 Franklin Focused Growth, you can compare the effects of market volatilities on Dupont De and Franklin Focused 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 Franklin Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Franklin Focused.
Diversification Opportunities for Dupont De and Franklin Focused
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Franklin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Franklin Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Focused Growth 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 Franklin Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Focused Growth has no effect on the direction of Dupont De i.e., Dupont De and Franklin Focused go up and down completely randomly.
Pair Corralation between Dupont De and Franklin Focused
Allowing for the 90-day total investment horizon Dupont De is expected to generate 5.09 times less return on investment than Franklin Focused. In addition to that, Dupont De is 1.16 times more volatile than Franklin Focused Growth. It trades about 0.02 of its total potential returns per unit of risk. Franklin Focused Growth is currently generating about 0.12 per unit of volatility. If you would invest 2,572 in Franklin Focused Growth on November 9, 2024 and sell it today you would earn a total of 1,600 from holding Franklin Focused Growth or generate 62.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.69% |
| Values | Daily Returns |
Dupont De Nemours vs. Franklin Focused Growth
Performance |
| Timeline |
| Dupont De Nemours |
| Franklin Focused Growth |
Dupont De and Franklin Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Franklin Focused
The main advantage of trading using opposite Dupont De and Franklin Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Franklin Focused 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 Franklin Focused will offset losses from the drop in Franklin Focused's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Franklin Focused vs. Davis Select International | Franklin Focused vs. Tidal ETF Trust | Franklin Focused vs. Principal Value ETF | Franklin Focused vs. WisdomTree Emerging Markets |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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