Correlation Between Dupont De and Amatheon Agri
Can any of the company-specific risk be diversified away by investing in both Dupont De and Amatheon Agri 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 Amatheon Agri 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 Amatheon Agri Holding, you can compare the effects of market volatilities on Dupont De and Amatheon Agri 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 Amatheon Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Amatheon Agri.
Diversification Opportunities for Dupont De and Amatheon Agri
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Amatheon is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Amatheon Agri Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amatheon Agri Holding 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 Amatheon Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amatheon Agri Holding has no effect on the direction of Dupont De i.e., Dupont De and Amatheon Agri go up and down completely randomly.
Pair Corralation between Dupont De and Amatheon Agri
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Amatheon Agri. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 24.3 times less risky than Amatheon Agri. The stock trades about -0.06 of its potential returns per unit of risk. The Amatheon Agri Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Amatheon Agri Holding on September 12, 2024 and sell it today you would lose (0.30) from holding Amatheon Agri Holding or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dupont De Nemours vs. Amatheon Agri Holding
Performance |
| Timeline |
| Dupont De Nemours |
| Amatheon Agri Holding |
Dupont De and Amatheon Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Amatheon Agri
The main advantage of trading using opposite Dupont De and Amatheon Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Amatheon Agri 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 Amatheon Agri will offset losses from the drop in Amatheon Agri's long position.| Dupont De vs. Griffon | Dupont De vs. Merck Company | Dupont De vs. Brinker International | Dupont De vs. Alcoa Corp |
| Amatheon Agri vs. Agrogeneration | Amatheon Agri vs. Delfingen | Amatheon Agri vs. ST Dupont | Amatheon Agri vs. Burelle 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.
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