Correlation Between Dupont De and Lesaka Technologies
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lesaka Technologies 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 Lesaka Technologies 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 Lesaka Technologies, you can compare the effects of market volatilities on Dupont De and Lesaka Technologies 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 Lesaka Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lesaka Technologies.
Diversification Opportunities for Dupont De and Lesaka Technologies
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Lesaka is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lesaka Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lesaka Technologies 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 Lesaka Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lesaka Technologies has no effect on the direction of Dupont De i.e., Dupont De and Lesaka Technologies go up and down completely randomly.
Pair Corralation between Dupont De and Lesaka Technologies
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.59 times more return on investment than Lesaka Technologies. However, Dupont De Nemours is 1.7 times less risky than Lesaka Technologies. It trades about 0.01 of its potential returns per unit of risk. Lesaka Technologies is currently generating about -0.03 per unit of risk. If you would invest 8,391 in Dupont De Nemours on August 28, 2024 and sell it today you would lose (7.00) from holding Dupont De Nemours or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Lesaka Technologies
Performance |
| Timeline |
| Dupont De Nemours |
| Lesaka Technologies |
Dupont De and Lesaka Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lesaka Technologies
The main advantage of trading using opposite Dupont De and Lesaka Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lesaka Technologies 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 Lesaka Technologies will offset losses from the drop in Lesaka Technologies' long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Lesaka Technologies vs. Centaur Bci Balanced | Lesaka Technologies vs. Growthpoint Properties | Lesaka Technologies vs. Bowler Metcalf | Lesaka Technologies vs. Shoprite Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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