Correlation Between Dupont De and Salient Select
Can any of the company-specific risk be diversified away by investing in both Dupont De and Salient Select 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 Salient Select 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 Salient Select Income, you can compare the effects of market volatilities on Dupont De and Salient Select 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 Salient Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Salient Select.
Diversification Opportunities for Dupont De and Salient Select
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dupont and Salient is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Salient Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Select Income 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 Salient Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Select Income has no effect on the direction of Dupont De i.e., Dupont De and Salient Select go up and down completely randomly.
Pair Corralation between Dupont De and Salient Select
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 3.79 times more return on investment than Salient Select. However, Dupont De is 3.79 times more volatile than Salient Select Income. It trades about 0.03 of its potential returns per unit of risk. Salient Select Income is currently generating about 0.05 per unit of risk. If you would invest 8,299 in Dupont De Nemours on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Dupont De Nemours or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dupont De Nemours vs. Salient Select Income
Performance |
| Timeline |
| Dupont De Nemours |
| Salient Select Income |
Dupont De and Salient Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Salient Select
The main advantage of trading using opposite Dupont De and Salient Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Salient Select 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 Salient Select will offset losses from the drop in Salient Select's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Salient Select vs. Salient Select Income | Salient Select vs. Ivy High Income | Salient Select vs. Salient Select Income | Salient Select vs. Salient International Real |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |