Correlation Between Dupont De and Northern Lion
Can any of the company-specific risk be diversified away by investing in both Dupont De and Northern Lion 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 Northern Lion 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 Northern Lion Gold, you can compare the effects of market volatilities on Dupont De and Northern Lion 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 Northern Lion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Northern Lion.
Diversification Opportunities for Dupont De and Northern Lion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dupont and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Northern Lion Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lion Gold 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 Northern Lion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lion Gold has no effect on the direction of Dupont De i.e., Dupont De and Northern Lion go up and down completely randomly.
Pair Corralation between Dupont De and Northern Lion
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.93 times more return on investment than Northern Lion. However, Dupont De Nemours is 1.07 times less risky than Northern Lion. It trades about 0.04 of its potential returns per unit of risk. Northern Lion Gold is currently generating about -0.04 per unit of risk. If you would invest 6,521 in Dupont De Nemours on September 5, 2024 and sell it today you would earn a total of 1,773 from holding Dupont De Nemours or generate 27.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dupont De Nemours vs. Northern Lion Gold
Performance |
| Timeline |
| Dupont De Nemours |
| Northern Lion Gold |
Dupont De and Northern Lion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Northern Lion
The main advantage of trading using opposite Dupont De and Northern Lion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Northern Lion 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 Northern Lion will offset losses from the drop in Northern Lion's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Northern Lion vs. Qubec Nickel Corp | Northern Lion vs. IGO Limited | Northern Lion vs. Avarone Metals | Northern Lion vs. Elcora Advanced Materials |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |