Correlation Between Dupont De and PetroChina
Can any of the company-specific risk be diversified away by investing in both Dupont De and PetroChina 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 PetroChina 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 PetroChina Co Ltd, you can compare the effects of market volatilities on Dupont De and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and PetroChina.
Diversification Opportunities for Dupont De and PetroChina
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and PetroChina is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Dupont De i.e., Dupont De and PetroChina go up and down completely randomly.
Pair Corralation between Dupont De and PetroChina
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.69 times more return on investment than PetroChina. However, Dupont De Nemours is 1.46 times less risky than PetroChina. It trades about 0.03 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.15 per unit of risk. If you would invest 8,327 in Dupont De Nemours on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Dupont De Nemours or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. PetroChina Co Ltd
Performance |
| Timeline |
| Dupont De Nemours |
| PetroChina |
Dupont De and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and PetroChina
The main advantage of trading using opposite Dupont De and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Air Products and | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc |
| PetroChina vs. Equinor ASA | PetroChina vs. Origin Energy Ltd | PetroChina vs. Shell PLC | PetroChina vs. Eni SpA ADR |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |