Correlation Between Dupont De and Lifetime Brands
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lifetime Brands 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 Lifetime Brands 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 Lifetime Brands, you can compare the effects of market volatilities on Dupont De and Lifetime Brands 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 Lifetime Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lifetime Brands.
Diversification Opportunities for Dupont De and Lifetime Brands
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Lifetime is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lifetime Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifetime Brands 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 Lifetime Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifetime Brands has no effect on the direction of Dupont De i.e., Dupont De and Lifetime Brands go up and down completely randomly.
Pair Corralation between Dupont De and Lifetime Brands
Allowing for the 90-day total investment horizon Dupont De is expected to generate 10.08 times less return on investment than Lifetime Brands. But when comparing it to its historical volatility, Dupont De Nemours is 2.87 times less risky than Lifetime Brands. It trades about 0.09 of its potential returns per unit of risk. Lifetime Brands is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Lifetime Brands on November 2, 2024 and sell it today you would earn a total of 117.00 from holding Lifetime Brands or generate 20.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Lifetime Brands
Performance |
| Timeline |
| Dupont De Nemours |
| Lifetime Brands |
Dupont De and Lifetime Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lifetime Brands
The main advantage of trading using opposite Dupont De and Lifetime Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lifetime Brands 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 Lifetime Brands will offset losses from the drop in Lifetime Brands' long position.| Dupont De vs. Aquagold International | Dupont De vs. MicroAlgo | Dupont De vs. Aeye Inc | Dupont De vs. Coca Cola Consolidated |
| Lifetime Brands vs. Bassett Furniture Industries | Lifetime Brands vs. Flexsteel Industries | Lifetime Brands vs. Hamilton Beach Brands | Lifetime Brands vs. Natuzzi SpA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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