Correlation Between Dupont De and Global Fashion
Can any of the company-specific risk be diversified away by investing in both Dupont De and Global Fashion 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 Global Fashion 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 Global Fashion Group, you can compare the effects of market volatilities on Dupont De and Global Fashion 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 Global Fashion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Global Fashion.
Diversification Opportunities for Dupont De and Global Fashion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dupont and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Global Fashion Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Fashion Group 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 Global Fashion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Fashion Group has no effect on the direction of Dupont De i.e., Dupont De and Global Fashion go up and down completely randomly.
Pair Corralation between Dupont De and Global Fashion
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.37 times more return on investment than Global Fashion. However, Dupont De Nemours is 2.72 times less risky than Global Fashion. It trades about 0.03 of its potential returns per unit of risk. Global Fashion Group is currently generating about -0.11 per unit of risk. If you would invest 8,327 in Dupont De Nemours on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Dupont De Nemours or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Global Fashion Group
Performance |
| Timeline |
| Dupont De Nemours |
| Global Fashion Group |
Dupont De and Global Fashion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Global Fashion
The main advantage of trading using opposite Dupont De and Global Fashion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Global Fashion 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 Global Fashion will offset losses from the drop in Global Fashion's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Air Products and | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc |
| Global Fashion vs. UET United Electronic | Global Fashion vs. CarsalesCom | Global Fashion vs. CARSALESCOM | Global Fashion vs. INTER CARS SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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