Correlation Between Dupont De and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Dupont De and Futu Holdings 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 Futu Holdings 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 Futu Holdings Limited, you can compare the effects of market volatilities on Dupont De and Futu Holdings 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 Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Futu Holdings.
Diversification Opportunities for Dupont De and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dupont and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings Limited 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 Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Dupont De i.e., Dupont De and Futu Holdings go up and down completely randomly.
Pair Corralation between Dupont De and Futu Holdings
If you would invest 6,697 in Dupont De Nemours on September 4, 2024 and sell it today you would earn a total of 1,675 from holding Dupont De Nemours or generate 25.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Dupont De Nemours vs. Futu Holdings Limited
Performance |
| Timeline |
| Dupont De Nemours |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dupont De and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Futu Holdings
The main advantage of trading using opposite Dupont De and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Futu Holdings vs. Akanda Corp | Futu Holdings vs. Cumberland Pharmaceuticals | Futu Holdings vs. Alvotech | Futu Holdings vs. SNDL Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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