Correlation Between Dupont De and Surya Permata
Can any of the company-specific risk be diversified away by investing in both Dupont De and Surya Permata 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 Surya Permata 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 Surya Permata Andalan, you can compare the effects of market volatilities on Dupont De and Surya Permata 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 Surya Permata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Surya Permata.
Diversification Opportunities for Dupont De and Surya Permata
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Surya is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Surya Permata Andalan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Permata Andalan 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 Surya Permata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Permata Andalan has no effect on the direction of Dupont De i.e., Dupont De and Surya Permata go up and down completely randomly.
Pair Corralation between Dupont De and Surya Permata
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.39 times more return on investment than Surya Permata. However, Dupont De Nemours is 2.55 times less risky than Surya Permata. It trades about 0.02 of its potential returns per unit of risk. Surya Permata Andalan is currently generating about -0.04 per unit of risk. If you would invest 6,986 in Dupont De Nemours on October 21, 2024 and sell it today you would earn a total of 761.00 from holding Dupont De Nemours or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.96% |
| Values | Daily Returns |
Dupont De Nemours vs. Surya Permata Andalan
Performance |
| Timeline |
| Dupont De Nemours |
| Surya Permata Andalan |
Dupont De and Surya Permata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Surya Permata
The main advantage of trading using opposite Dupont De and Surya Permata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Surya Permata 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 Surya Permata will offset losses from the drop in Surya Permata's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Surya Permata vs. Bintang Oto Global | Surya Permata vs. Metro Healthcare Indonesia | Surya Permata vs. Bhakti Multi Artha | Surya Permata vs. MNC Vision Networks |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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