Correlation Between Dupont De and AIM ETF
Can any of the company-specific risk be diversified away by investing in both Dupont De and AIM ETF 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 AIM ETF 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 AIM ETF Products, you can compare the effects of market volatilities on Dupont De and AIM ETF 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 AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and AIM ETF.
Diversification Opportunities for Dupont De and AIM ETF
Average diversification
The 3 months correlation between Dupont and AIM is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products 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 AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of Dupont De i.e., Dupont De and AIM ETF go up and down completely randomly.
Pair Corralation between Dupont De and AIM ETF
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.0 times less return on investment than AIM ETF. In addition to that, Dupont De is 3.16 times more volatile than AIM ETF Products. It trades about 0.04 of its total potential returns per unit of risk. AIM ETF Products is currently generating about 0.14 per unit of volatility. If you would invest 2,802 in AIM ETF Products on September 1, 2024 and sell it today you would earn a total of 786.00 from holding AIM ETF Products or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Dupont De Nemours vs. AIM ETF Products
Performance |
| Timeline |
| Dupont De Nemours |
| AIM ETF Products |
Dupont De and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and AIM ETF
The main advantage of trading using opposite Dupont De and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, AIM ETF 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 AIM ETF will offset losses from the drop in AIM ETF's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AllianzIM Large Cap | AIM ETF vs. AIM ETF Products |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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