Correlation Between Dupont De and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Dupont De and Mainstay Mackay 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 Mainstay Mackay 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 Mainstay Mackay Strategic, you can compare the effects of market volatilities on Dupont De and Mainstay Mackay 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 Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Mainstay Mackay.
Diversification Opportunities for Dupont De and Mainstay Mackay
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Mainstay is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Mainstay Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic 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 Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Strategic has no effect on the direction of Dupont De i.e., Dupont De and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Dupont De and Mainstay Mackay
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 6.39 times more return on investment than Mainstay Mackay. However, Dupont De is 6.39 times more volatile than Mainstay Mackay Strategic. It trades about 0.05 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.18 per unit of risk. If you would invest 8,250 in Dupont De Nemours on September 2, 2024 and sell it today you would earn a total of 109.00 from holding Dupont De Nemours or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Dupont De Nemours |
| Mainstay Mackay Strategic |
Dupont De and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Mainstay Mackay
The main advantage of trading using opposite Dupont De and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Mainstay Mackay 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 Mainstay Mackay will offset losses from the drop in Mainstay Mackay's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Mainstay Mackay vs. Mainstay Tax Free | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay vs. Mainstay Large Cap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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