Correlation Between Dupont De and Jerónimo Martins
Can any of the company-specific risk be diversified away by investing in both Dupont De and Jerónimo Martins 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 Jerónimo Martins 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 Jernimo Martins SGPS, you can compare the effects of market volatilities on Dupont De and Jerónimo Martins 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 Jerónimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Jerónimo Martins.
Diversification Opportunities for Dupont De and Jerónimo Martins
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Jerónimo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jernimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jernimo Martins SGPS 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 Jerónimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jernimo Martins SGPS has no effect on the direction of Dupont De i.e., Dupont De and Jerónimo Martins go up and down completely randomly.
Pair Corralation between Dupont De and Jerónimo Martins
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.35 times less return on investment than Jerónimo Martins. But when comparing it to its historical volatility, Dupont De Nemours is 1.45 times less risky than Jerónimo Martins. It trades about 0.14 of its potential returns per unit of risk. Jernimo Martins SGPS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,848 in Jernimo Martins SGPS on November 8, 2024 and sell it today you would earn a total of 86.00 from holding Jernimo Martins SGPS or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dupont De Nemours vs. Jernimo Martins SGPS
Performance |
| Timeline |
| Dupont De Nemours |
| Jernimo Martins SGPS |
Dupont De and Jerónimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Jerónimo Martins
The main advantage of trading using opposite Dupont De and Jerónimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Jerónimo Martins 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 Jerónimo Martins will offset losses from the drop in Jerónimo Martins' long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Jerónimo Martins vs. Nanjing Panda Electronics | Jerónimo Martins vs. KIMBALL ELECTRONICS | Jerónimo Martins vs. Meiko Electronics Co | Jerónimo Martins vs. Tsingtao Brewery |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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