Correlation Between Dupont De and GI Group
Can any of the company-specific risk be diversified away by investing in both Dupont De and GI Group 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 GI Group 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 GI Group Poland, you can compare the effects of market volatilities on Dupont De and GI Group 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 GI Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and GI Group.
Diversification Opportunities for Dupont De and GI Group
Excellent diversification
The 3 months correlation between Dupont and GIG is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and GI Group Poland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GI Group Poland 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 GI Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GI Group Poland has no effect on the direction of Dupont De i.e., Dupont De and GI Group go up and down completely randomly.
Pair Corralation between Dupont De and GI Group
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.64 times more return on investment than GI Group. However, Dupont De Nemours is 1.56 times less risky than GI Group. It trades about 0.04 of its potential returns per unit of risk. GI Group Poland is currently generating about 0.01 per unit of risk. If you would invest 6,874 in Dupont De Nemours on August 31, 2024 and sell it today you would earn a total of 1,485 from holding Dupont De Nemours or generate 21.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Dupont De Nemours vs. GI Group Poland
Performance |
| Timeline |
| Dupont De Nemours |
| GI Group Poland |
Dupont De and GI Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and GI Group
The main advantage of trading using opposite Dupont De and GI Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, GI Group 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 GI Group will offset losses from the drop in GI Group's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc | Dupont De vs. Sherwin Williams Co |
| GI Group vs. Movie Games SA | GI Group vs. Gamedust SA | GI Group vs. mBank SA | GI Group vs. Biztech Konsulting 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |