Correlation Between Dupont De and Bank Mega
Can any of the company-specific risk be diversified away by investing in both Dupont De and Bank Mega 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 Bank Mega 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 Bank Mega Tbk, you can compare the effects of market volatilities on Dupont De and Bank Mega 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 Bank Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Bank Mega.
Diversification Opportunities for Dupont De and Bank Mega
Very poor diversification
The 3 months correlation between Dupont and Bank is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Bank Mega Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mega Tbk 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 Bank Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mega Tbk has no effect on the direction of Dupont De i.e., Dupont De and Bank Mega go up and down completely randomly.
Pair Corralation between Dupont De and Bank Mega
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.41 times more return on investment than Bank Mega. However, Dupont De Nemours is 2.46 times less risky than Bank Mega. It trades about 0.13 of its potential returns per unit of risk. Bank Mega Tbk is currently generating about -0.14 per unit of risk. If you would invest 7,475 in Dupont De Nemours on November 4, 2024 and sell it today you would earn a total of 205.00 from holding Dupont De Nemours or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Bank Mega Tbk
Performance |
| Timeline |
| Dupont De Nemours |
| Bank Mega Tbk |
Dupont De and Bank Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Bank Mega
The main advantage of trading using opposite Dupont De and Bank Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Bank Mega 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 Bank Mega will offset losses from the drop in Bank Mega's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Bank Mega vs. Bank Ocbc Nisp | Bank Mega vs. Bank Mayapada Internasional | Bank Mega vs. Bank Permata Tbk | Bank Mega vs. Bank Pan Indonesia |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |