Correlation Between Dupont De and KION GROUP
Can any of the company-specific risk be diversified away by investing in both Dupont De and KION GROUP 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 KION GROUP 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 KION GROUP AG, you can compare the effects of market volatilities on Dupont De and KION GROUP 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 KION GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and KION GROUP.
Diversification Opportunities for Dupont De and KION GROUP
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and KION is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and KION GROUP AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION GROUP AG 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 KION GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION GROUP AG has no effect on the direction of Dupont De i.e., Dupont De and KION GROUP go up and down completely randomly.
Pair Corralation between Dupont De and KION GROUP
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.64 times more return on investment than KION GROUP. However, Dupont De Nemours is 1.55 times less risky than KION GROUP. It trades about 0.04 of its potential returns per unit of risk. KION GROUP AG is currently generating about 0.0 per unit of risk. If you would invest 8,005 in Dupont De Nemours on September 12, 2024 and sell it today you would earn a total of 203.00 from holding Dupont De Nemours or generate 2.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Dupont De Nemours vs. KION GROUP AG
Performance |
Timeline |
Dupont De Nemours |
KION GROUP AG |
Dupont De and KION GROUP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dupont De and KION GROUP
The main advantage of trading using opposite Dupont De and KION GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, KION GROUP 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 KION GROUP will offset losses from the drop in KION GROUP's long position.Dupont De vs. Griffon | Dupont De vs. Merck Company | Dupont De vs. Brinker International | Dupont De vs. Alcoa Corp |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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