Correlation Between Dupont De and Structured Products
Can any of the company-specific risk be diversified away by investing in both Dupont De and Structured Products 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 Structured Products 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 Structured Products Corp, you can compare the effects of market volatilities on Dupont De and Structured Products 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 Structured Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Structured Products.
Diversification Opportunities for Dupont De and Structured Products
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dupont and Structured is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Structured Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structured Products Corp 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 Structured Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structured Products Corp has no effect on the direction of Dupont De i.e., Dupont De and Structured Products go up and down completely randomly.
Pair Corralation between Dupont De and Structured Products
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.06 times more return on investment than Structured Products. However, Dupont De is 1.06 times more volatile than Structured Products Corp. It trades about 0.04 of its potential returns per unit of risk. Structured Products Corp is currently generating about 0.03 per unit of risk. If you would invest 6,874 in Dupont De Nemours on August 31, 2024 and sell it today you would earn a total of 1,485 from holding Dupont De Nemours or generate 21.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.79% |
| Values | Daily Returns |
Dupont De Nemours vs. Structured Products Corp
Performance |
| Timeline |
| Dupont De Nemours |
| Structured Products Corp |
Dupont De and Structured Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Structured Products
The main advantage of trading using opposite Dupont De and Structured Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Structured Products 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 Structured Products will offset losses from the drop in Structured Products' long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc | Dupont De vs. Sherwin Williams Co |
| Structured Products vs. HUMANA INC | Structured Products vs. SCOR PK | Structured Products vs. Aquagold International | Structured Products vs. Thrivent High Yield |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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