Correlation Between Dupont De and GFC Green
Can any of the company-specific risk be diversified away by investing in both Dupont De and GFC Green 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 GFC Green 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 GFC Green Fields, you can compare the effects of market volatilities on Dupont De and GFC Green 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 GFC Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and GFC Green.
Diversification Opportunities for Dupont De and GFC Green
Very weak diversification
The 3 months correlation between Dupont and GFC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and GFC Green Fields in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFC Green Fields 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 GFC Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFC Green Fields has no effect on the direction of Dupont De i.e., Dupont De and GFC Green go up and down completely randomly.
Pair Corralation between Dupont De and GFC Green
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.96 times more return on investment than GFC Green. However, Dupont De is 1.96 times more volatile than GFC Green Fields. It trades about 0.17 of its potential returns per unit of risk. GFC Green Fields is currently generating about 0.3 per unit of risk. If you would invest 7,666 in Dupont De Nemours on November 28, 2024 and sell it today you would earn a total of 516.00 from holding Dupont De Nemours or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Dupont De Nemours vs. GFC Green Fields
Performance |
| Timeline |
| Dupont De Nemours |
| GFC Green Fields |
Dupont De and GFC Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and GFC Green
The main advantage of trading using opposite Dupont De and GFC Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, GFC Green 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 GFC Green will offset losses from the drop in GFC Green's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| GFC Green vs. Willy Food | GFC Green vs. Ormat Technologies | GFC Green vs. ICL Israel Chemicals | GFC Green vs. Imed Infinity Medical Limited |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |