Correlation Between Dupont De and Oscar Health
Can any of the company-specific risk be diversified away by investing in both Dupont De and Oscar Health 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 Oscar Health 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 Oscar Health, you can compare the effects of market volatilities on Dupont De and Oscar Health 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 Oscar Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Oscar Health.
Diversification Opportunities for Dupont De and Oscar Health
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Oscar is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Oscar Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oscar Health 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 Oscar Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oscar Health has no effect on the direction of Dupont De i.e., Dupont De and Oscar Health go up and down completely randomly.
Pair Corralation between Dupont De and Oscar Health
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.45 times less return on investment than Oscar Health. But when comparing it to its historical volatility, Dupont De Nemours is 3.18 times less risky than Oscar Health. It trades about 0.12 of its potential returns per unit of risk. Oscar Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,252 in Oscar Health on August 28, 2024 and sell it today you would earn a total of 433.00 from holding Oscar Health or generate 34.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Oscar Health
Performance |
| Timeline |
| Dupont De Nemours |
| Oscar Health |
Dupont De and Oscar Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Oscar Health
The main advantage of trading using opposite Dupont De and Oscar Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Oscar Health 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 Oscar Health will offset losses from the drop in Oscar Health's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Oscar Health vs. Molina Healthcare | Oscar Health vs. Centene Corp | Oscar Health vs. Elevance Health | Oscar Health vs. Clover Health Investments |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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