Correlation Between Dupont De and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Dupont De and FTAC Emerald 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 FTAC Emerald 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 FTAC Emerald Acquisition, you can compare the effects of market volatilities on Dupont De and FTAC Emerald 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 FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and FTAC Emerald.
Diversification Opportunities for Dupont De and FTAC Emerald
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and FTAC is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Dupont De i.e., Dupont De and FTAC Emerald go up and down completely randomly.
Pair Corralation between Dupont De and FTAC Emerald
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.64 times less return on investment than FTAC Emerald. But when comparing it to its historical volatility, Dupont De Nemours is 1.5 times less risky than FTAC Emerald. It trades about 0.03 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,130 in FTAC Emerald Acquisition on September 1, 2024 and sell it today you would earn a total of 70.00 from holding FTAC Emerald Acquisition or generate 6.19% 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. FTAC Emerald Acquisition
Performance |
| Timeline |
| Dupont De Nemours |
| FTAC Emerald Acquisition |
Dupont De and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and FTAC Emerald
The main advantage of trading using opposite Dupont De and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. CO2 Energy Transition | FTAC Emerald vs. Vine Hill Capital | FTAC Emerald vs. DUET Acquisition Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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