Correlation Between Dupont De and Polen Growth
Can any of the company-specific risk be diversified away by investing in both Dupont De and Polen Growth 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 Polen Growth 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 Polen Growth Fund, you can compare the effects of market volatilities on Dupont De and Polen Growth 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 Polen Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Polen Growth.
Diversification Opportunities for Dupont De and Polen Growth
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dupont and Polen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Polen Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Growth 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 Polen Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Growth has no effect on the direction of Dupont De i.e., Dupont De and Polen Growth go up and down completely randomly.
Pair Corralation between Dupont De and Polen Growth
Allowing for the 90-day total investment horizon Dupont De is expected to generate 7.28 times less return on investment than Polen Growth. In addition to that, Dupont De is 1.51 times more volatile than Polen Growth Fund. It trades about 0.02 of its total potential returns per unit of risk. Polen Growth Fund is currently generating about 0.25 per unit of volatility. If you would invest 4,553 in Polen Growth Fund on August 30, 2024 and sell it today you would earn a total of 270.00 from holding Polen Growth Fund or generate 5.93% 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. Polen Growth Fund
Performance |
| Timeline |
| Dupont De Nemours |
| Polen Growth |
Dupont De and Polen Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Polen Growth
The main advantage of trading using opposite Dupont De and Polen Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Polen Growth 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 Polen Growth will offset losses from the drop in Polen Growth's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Polen Growth vs. Polen Growth Fund | Polen Growth vs. Edgewood Growth Fund | Polen Growth vs. Akre Focus Fund | Polen Growth vs. Brown Advisory Sustainable |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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