Correlation Between Dupont De and Ladder Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dupont De and Ladder Capital 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 Ladder Capital 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 Ladder Capital Corp, you can compare the effects of market volatilities on Dupont De and Ladder Capital 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 Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Ladder Capital.

Diversification Opportunities for Dupont De and Ladder Capital

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Dupont and Ladder is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Ladder Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladder Capital 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 Ladder Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladder Capital Corp has no effect on the direction of Dupont De i.e., Dupont De and Ladder Capital go up and down completely randomly.

Pair Corralation between Dupont De and Ladder Capital

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Ladder Capital. In addition to that, Dupont De is 1.13 times more volatile than Ladder Capital Corp. It trades about -0.03 of its total potential returns per unit of risk. Ladder Capital Corp is currently generating about 0.21 per unit of volatility. If you would invest  1,097  in Ladder Capital Corp on August 24, 2024 and sell it today you would earn a total of  73.00  from holding Ladder Capital Corp or generate 6.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Dupont De Nemours  vs.  Ladder Capital Corp

 Performance 
       Timeline  
Dupont De Nemours 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Dupont De is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Ladder Capital Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ladder Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Ladder Capital is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Dupont De and Ladder Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dupont De and Ladder Capital

The main advantage of trading using opposite Dupont De and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Ladder Capital 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 Ladder Capital will offset losses from the drop in Ladder Capital's long position.
The idea behind Dupont De Nemours and Ladder Capital Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges