Correlation Between Dupont De and Intershop Holding
Can any of the company-specific risk be diversified away by investing in both Dupont De and Intershop Holding 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 Intershop Holding 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 Intershop Holding AG, you can compare the effects of market volatilities on Dupont De and Intershop Holding 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 Intershop Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Intershop Holding.
Diversification Opportunities for Dupont De and Intershop Holding
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Intershop is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Intershop Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intershop Holding 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 Intershop Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intershop Holding has no effect on the direction of Dupont De i.e., Dupont De and Intershop Holding go up and down completely randomly.
Pair Corralation between Dupont De and Intershop Holding
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 2.32 times more return on investment than Intershop Holding. However, Dupont De is 2.32 times more volatile than Intershop Holding AG. It trades about 0.05 of its potential returns per unit of risk. Intershop Holding AG is currently generating about 0.04 per unit of risk. If you would invest 6,773 in Dupont De Nemours on September 4, 2024 and sell it today you would earn a total of 1,599 from holding Dupont De Nemours or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Intershop Holding AG
Performance |
| Timeline |
| Dupont De Nemours |
| Intershop Holding |
Dupont De and Intershop Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Intershop Holding
The main advantage of trading using opposite Dupont De and Intershop Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Intershop Holding 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 Intershop Holding will offset losses from the drop in Intershop Holding's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Intershop Holding vs. Allreal Holding | Intershop Holding vs. Mobimo Hldg | Intershop Holding vs. PSP Swiss Property | Intershop Holding vs. Swiss Prime Site |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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