Correlation Between Dupont De and FM Mattsson
Can any of the company-specific risk be diversified away by investing in both Dupont De and FM Mattsson 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 FM Mattsson 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 FM Mattsson Mora, you can compare the effects of market volatilities on Dupont De and FM Mattsson 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 FM Mattsson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and FM Mattsson.
Diversification Opportunities for Dupont De and FM Mattsson
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and FMM-B is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and FM Mattsson Mora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FM Mattsson Mora 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 FM Mattsson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FM Mattsson Mora has no effect on the direction of Dupont De i.e., Dupont De and FM Mattsson go up and down completely randomly.
Pair Corralation between Dupont De and FM Mattsson
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.74 times more return on investment than FM Mattsson. However, Dupont De Nemours is 1.36 times less risky than FM Mattsson. It trades about 0.03 of its potential returns per unit of risk. FM Mattsson Mora is currently generating about 0.02 per unit of risk. If you would invest 8,026 in Dupont De Nemours on September 1, 2024 and sell it today you would earn a total of 333.00 from holding Dupont De Nemours or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Dupont De Nemours vs. FM Mattsson Mora
Performance |
| Timeline |
| Dupont De Nemours |
| FM Mattsson Mora |
Dupont De and FM Mattsson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and FM Mattsson
The main advantage of trading using opposite Dupont De and FM Mattsson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, FM Mattsson 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 FM Mattsson will offset losses from the drop in FM Mattsson's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| FM Mattsson vs. Nordic Waterproofing Holding | FM Mattsson vs. Bufab Holding AB | FM Mattsson vs. Garo AB | FM Mattsson vs. Inwido AB |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |