Correlation Between Dupont De and PBG SA
Can any of the company-specific risk be diversified away by investing in both Dupont De and PBG SA 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 PBG SA 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 PBG SA, you can compare the effects of market volatilities on Dupont De and PBG SA 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 PBG SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and PBG SA.
Diversification Opportunities for Dupont De and PBG SA
Good diversification
The 3 months correlation between Dupont and PBG is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and PBG SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PBG SA 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 PBG SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PBG SA has no effect on the direction of Dupont De i.e., Dupont De and PBG SA go up and down completely randomly.
Pair Corralation between Dupont De and PBG SA
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.59 times less return on investment than PBG SA. But when comparing it to its historical volatility, Dupont De Nemours is 2.64 times less risky than PBG SA. It trades about 0.03 of its potential returns per unit of risk. PBG SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 418.00 in PBG SA on September 1, 2024 and sell it today you would lose (1.00) from holding PBG SA or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dupont De Nemours vs. PBG SA
Performance |
| Timeline |
| Dupont De Nemours |
| PBG SA |
Dupont De and PBG SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and PBG SA
The main advantage of trading using opposite Dupont De and PBG SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, PBG SA 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 PBG SA will offset losses from the drop in PBG SA's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| PBG SA vs. METISA Metalrgica Timboense | PBG SA vs. Lupatech SA | PBG SA vs. Fras le SA | PBG SA vs. Energisa SA |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |