Correlation Between Dupont De and IAMGold
Can any of the company-specific risk be diversified away by investing in both Dupont De and IAMGold 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 IAMGold 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 IAMGold, you can compare the effects of market volatilities on Dupont De and IAMGold 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 IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and IAMGold.
Diversification Opportunities for Dupont De and IAMGold
Average diversification
The 3 months correlation between Dupont and IAMGold is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold 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 IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Dupont De i.e., Dupont De and IAMGold go up and down completely randomly.
Pair Corralation between Dupont De and IAMGold
Allowing for the 90-day total investment horizon Dupont De is expected to generate 4.95 times less return on investment than IAMGold. But when comparing it to its historical volatility, Dupont De Nemours is 2.17 times less risky than IAMGold. It trades about 0.03 of its potential returns per unit of risk. IAMGold is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 286.00 in IAMGold on August 24, 2024 and sell it today you would earn a total of 513.00 from holding IAMGold or generate 179.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dupont De Nemours vs. IAMGold
Performance |
| Timeline |
| Dupont De Nemours |
| IAMGold |
Dupont De and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and IAMGold
The main advantage of trading using opposite Dupont De and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| IAMGold vs. Eldorado Gold Corp | IAMGold vs. Kinross Gold Corp | IAMGold vs. Alamos Gold | IAMGold vs. New Gold |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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