Correlation Between Dupont De and Multi Units
Can any of the company-specific risk be diversified away by investing in both Dupont De and Multi Units 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 Multi Units 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 Multi Units Luxembourg, you can compare the effects of market volatilities on Dupont De and Multi Units 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 Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Multi Units.
Diversification Opportunities for Dupont De and Multi Units
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dupont and Multi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Multi Units Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units Luxembourg 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 Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units Luxembourg has no effect on the direction of Dupont De i.e., Dupont De and Multi Units go up and down completely randomly.
Pair Corralation between Dupont De and Multi Units
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.38 times less return on investment than Multi Units. In addition to that, Dupont De is 1.01 times more volatile than Multi Units Luxembourg. It trades about 0.04 of its total potential returns per unit of risk. Multi Units Luxembourg is currently generating about 0.06 per unit of volatility. If you would invest 12,962 in Multi Units Luxembourg on August 31, 2024 and sell it today you would earn a total of 4,422 from holding Multi Units Luxembourg or generate 34.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.16% |
| Values | Daily Returns |
Dupont De Nemours vs. Multi Units Luxembourg
Performance |
| Timeline |
| Dupont De Nemours |
| Multi Units Luxembourg |
Dupont De and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Multi Units
The main advantage of trading using opposite Dupont De and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc | Dupont De vs. Sherwin Williams Co |
| Multi Units vs. Multi Units France | Multi Units vs. Lyxor MSCI China | Multi Units vs. Lyxor Commodities RefinitivCoreCommodity | Multi Units vs. Manitou BF 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |