Correlation Between Dupont De and IES Holdings
Can any of the company-specific risk be diversified away by investing in both Dupont De and IES Holdings 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 IES Holdings 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 IES Holdings, you can compare the effects of market volatilities on Dupont De and IES Holdings 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 IES Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and IES Holdings.
Diversification Opportunities for Dupont De and IES Holdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and IES is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and IES Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IES Holdings 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 IES Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IES Holdings has no effect on the direction of Dupont De i.e., Dupont De and IES Holdings go up and down completely randomly.
Pair Corralation between Dupont De and IES Holdings
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.65 times more return on investment than IES Holdings. However, Dupont De Nemours is 1.55 times less risky than IES Holdings. It trades about 0.04 of its potential returns per unit of risk. IES Holdings is currently generating about 0.01 per unit of risk. If you would invest 6,747 in Dupont De Nemours on August 29, 2024 and sell it today you would earn a total of 1,637 from holding Dupont De Nemours or generate 24.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.78% |
| Values | Daily Returns |
Dupont De Nemours vs. IES Holdings
Performance |
| Timeline |
| Dupont De Nemours |
| IES Holdings |
Dupont De and IES Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and IES Holdings
The main advantage of trading using opposite Dupont De and IES Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, IES Holdings 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 IES Holdings will offset losses from the drop in IES Holdings' long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| IES Holdings vs. Israel Canada | IES Holdings vs. Delek Group | IES Holdings vs. Shikun Binui | IES Holdings vs. Israel Discount Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |