Correlation Between Dupont De and Lider Faktoring
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lider Faktoring 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 Lider Faktoring 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 Lider Faktoring AS, you can compare the effects of market volatilities on Dupont De and Lider Faktoring 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 Lider Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lider Faktoring.
Diversification Opportunities for Dupont De and Lider Faktoring
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Lider is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lider Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lider Faktoring AS 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 Lider Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lider Faktoring AS has no effect on the direction of Dupont De i.e., Dupont De and Lider Faktoring go up and down completely randomly.
Pair Corralation between Dupont De and Lider Faktoring
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.78 times more return on investment than Lider Faktoring. However, Dupont De Nemours is 1.28 times less risky than Lider Faktoring. It trades about 0.03 of its potential returns per unit of risk. Lider Faktoring AS is currently generating about -0.04 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 Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dupont De Nemours vs. Lider Faktoring AS
Performance |
| Timeline |
| Dupont De Nemours |
| Lider Faktoring AS |
Dupont De and Lider Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lider Faktoring
The main advantage of trading using opposite Dupont De and Lider Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lider Faktoring 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 Lider Faktoring will offset losses from the drop in Lider Faktoring's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Lider Faktoring vs. Politeknik Metal Sanayi | Lider Faktoring vs. Gentas Genel Metal | Lider Faktoring vs. Galatasaray Sportif Sinai | Lider Faktoring vs. MEGA METAL |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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