Correlation Between Dupont De and Great Elm
Can any of the company-specific risk be diversified away by investing in both Dupont De and Great Elm 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 Great Elm 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 Great Elm Capital, you can compare the effects of market volatilities on Dupont De and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Great Elm.
Diversification Opportunities for Dupont De and Great Elm
Modest diversification
The 3 months correlation between Dupont and Great is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of Dupont De i.e., Dupont De and Great Elm go up and down completely randomly.
Pair Corralation between Dupont De and Great Elm
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.07 times less return on investment than Great Elm. In addition to that, Dupont De is 2.52 times more volatile than Great Elm Capital. It trades about 0.02 of its total potential returns per unit of risk. Great Elm Capital is currently generating about 0.06 per unit of volatility. If you would invest 2,437 in Great Elm Capital on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Great Elm Capital or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 72.22% |
| Values | Daily Returns |
Dupont De Nemours vs. Great Elm Capital
Performance |
| Timeline |
| Dupont De Nemours |
| Great Elm Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Dupont De and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Great Elm
The main advantage of trading using opposite Dupont De and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Dupont De vs. Direxion Daily FTSE | Dupont De vs. Collegium Pharmaceutical | Dupont De vs. KKR Co LP | Dupont De vs. iShares Dividend and |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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