Correlation Between Dupont De and Sit Global
Can any of the company-specific risk be diversified away by investing in both Dupont De and Sit Global 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 Sit Global 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 Sit Global Dividend, you can compare the effects of market volatilities on Dupont De and Sit Global 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 Sit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Sit Global.
Diversification Opportunities for Dupont De and Sit Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dupont and Sit is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Sit Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Global Dividend 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 Sit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Global Dividend has no effect on the direction of Dupont De i.e., Dupont De and Sit Global go up and down completely randomly.
Pair Corralation between Dupont De and Sit Global
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.86 times less return on investment than Sit Global. In addition to that, Dupont De is 1.73 times more volatile than Sit Global Dividend. It trades about 0.03 of its total potential returns per unit of risk. Sit Global Dividend is currently generating about 0.1 per unit of volatility. If you would invest 2,606 in Sit Global Dividend on September 1, 2024 and sell it today you would earn a total of 252.00 from holding Sit Global Dividend or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Dupont De Nemours vs. Sit Global Dividend
Performance |
| Timeline |
| Dupont De Nemours |
| Sit Global Dividend |
Dupont De and Sit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Sit Global
The main advantage of trading using opposite Dupont De and Sit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Sit Global 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 Sit Global will offset losses from the drop in Sit Global's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Sit Global vs. Mfs Technology Fund | Sit Global vs. Pgim Jennison Technology | Sit Global vs. Blackrock Science Technology | Sit Global vs. Goldman Sachs Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |