Correlation Between Dupont De and Lasertec
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lasertec 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 Lasertec 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 Lasertec, you can compare the effects of market volatilities on Dupont De and Lasertec 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 Lasertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lasertec.
Diversification Opportunities for Dupont De and Lasertec
Good diversification
The 3 months correlation between Dupont and Lasertec is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec 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 Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of Dupont De i.e., Dupont De and Lasertec go up and down completely randomly.
Pair Corralation between Dupont De and Lasertec
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.47 times more return on investment than Lasertec. However, Dupont De Nemours is 2.15 times less risky than Lasertec. It trades about -0.03 of its potential returns per unit of risk. Lasertec is currently generating about -0.25 per unit of risk. If you would invest 8,439 in Dupont De Nemours on August 24, 2024 and sell it today you would lose (107.00) from holding Dupont De Nemours or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dupont De Nemours vs. Lasertec
Performance |
| Timeline |
| Dupont De Nemours |
| Lasertec |
Dupont De and Lasertec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lasertec
The main advantage of trading using opposite Dupont De and Lasertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lasertec 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 Lasertec will offset losses from the drop in Lasertec'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 |
| Lasertec vs. Sumco Corp ADR | Lasertec vs. Asm Pacific Technology | Lasertec vs. Tokyo Electron | Lasertec vs. Advantest |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |