Correlation Between Dupont De and LKQ
Can any of the company-specific risk be diversified away by investing in both Dupont De and LKQ 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 LKQ 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 LKQ Corporation, you can compare the effects of market volatilities on Dupont De and LKQ 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 LKQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and LKQ.
Diversification Opportunities for Dupont De and LKQ
Good diversification
The 3 months correlation between Dupont and LKQ is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and LKQ Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LKQ Corporation 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 LKQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LKQ Corporation has no effect on the direction of Dupont De i.e., Dupont De and LKQ go up and down completely randomly.
Pair Corralation between Dupont De and LKQ
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the LKQ. In addition to that, Dupont De is 1.33 times more volatile than LKQ Corporation. It trades about -0.05 of its total potential returns per unit of risk. LKQ Corporation is currently generating about 0.04 per unit of volatility. If you would invest 3,749 in LKQ Corporation on August 24, 2024 and sell it today you would earn a total of 39.00 from holding LKQ Corporation or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. LKQ Corp.
Performance |
| Timeline |
| Dupont De Nemours |
| LKQ Corporation |
Dupont De and LKQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and LKQ
The main advantage of trading using opposite Dupont De and LKQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, LKQ 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 LKQ will offset losses from the drop in LKQ's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |