Correlation Between Dupont De and KebNi AB
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By analyzing existing cross correlation between Dupont De Nemours and KebNi AB, you can compare the effects of market volatilities on Dupont De and KebNi AB 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 KebNi AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and KebNi AB.
Diversification Opportunities for Dupont De and KebNi AB
Good diversification
The 3 months correlation between Dupont and KebNi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and KebNi AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KebNi AB 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 KebNi AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KebNi AB has no effect on the direction of Dupont De i.e., Dupont De and KebNi AB go up and down completely randomly.
Pair Corralation between Dupont De and KebNi AB
Allowing for the 90-day total investment horizon Dupont De is expected to generate 3.38 times less return on investment than KebNi AB. But when comparing it to its historical volatility, Dupont De Nemours is 2.48 times less risky than KebNi AB. It trades about 0.16 of its potential returns per unit of risk. KebNi AB is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 106.00 in KebNi AB on November 28, 2024 and sell it today you would earn a total of 24.00 from holding KebNi AB or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dupont De Nemours vs. KebNi AB
Performance |
| Timeline |
| Dupont De Nemours |
| KebNi AB |
Dupont De and KebNi AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and KebNi AB
The main advantage of trading using opposite Dupont De and KebNi AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, KebNi AB 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 KebNi AB will offset losses from the drop in KebNi AB's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| KebNi AB vs. Clinical Laserthermia Systems | KebNi AB vs. Net Insight AB | KebNi AB vs. Karolinska Development AB | KebNi AB vs. Mekonomen AB |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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