Correlation Between Dupont De and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lixte Biotechnology 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 Lixte Biotechnology 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 Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Dupont De and Lixte Biotechnology 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 Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lixte Biotechnology.
Diversification Opportunities for Dupont De and Lixte Biotechnology
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dupont and Lixte is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology 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 Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Dupont De i.e., Dupont De and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Dupont De and Lixte Biotechnology
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Lixte Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 7.09 times less risky than Lixte Biotechnology. The stock trades about -0.1 of its potential returns per unit of risk. The Lixte Biotechnology Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Lixte Biotechnology Holdings on October 24, 2024 and sell it today you would earn a total of 52.00 from holding Lixte Biotechnology Holdings or generate 28.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Dupont De Nemours |
| Lixte Biotechnology |
Dupont De and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lixte Biotechnology
The main advantage of trading using opposite Dupont De and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus Therapeutics |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |