Correlation Between Dupont De and Santhera Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Dupont De and Santhera Pharmaceuticals 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 Santhera Pharmaceuticals 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 Santhera Pharmaceuticals Holding, you can compare the effects of market volatilities on Dupont De and Santhera Pharmaceuticals 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 Santhera Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Santhera Pharmaceuticals.
Diversification Opportunities for Dupont De and Santhera Pharmaceuticals
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dupont and Santhera is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Santhera Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santhera Pharmaceuticals 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 Santhera Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santhera Pharmaceuticals has no effect on the direction of Dupont De i.e., Dupont De and Santhera Pharmaceuticals go up and down completely randomly.
Pair Corralation between Dupont De and Santhera Pharmaceuticals
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.76 times more return on investment than Santhera Pharmaceuticals. However, Dupont De Nemours is 1.31 times less risky than Santhera Pharmaceuticals. It trades about -0.02 of its potential returns per unit of risk. Santhera Pharmaceuticals Holding is currently generating about -0.26 per unit of risk. If you would invest 8,423 in Dupont De Nemours on August 25, 2024 and sell it today you would lose (91.00) from holding Dupont De Nemours or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Santhera Pharmaceuticals Holdi
Performance |
| Timeline |
| Dupont De Nemours |
| Santhera Pharmaceuticals |
Dupont De and Santhera Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Santhera Pharmaceuticals
The main advantage of trading using opposite Dupont De and Santhera Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Santhera Pharmaceuticals 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 Santhera Pharmaceuticals will offset losses from the drop in Santhera Pharmaceuticals' long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| Santhera Pharmaceuticals vs. Basilea Pharmaceutica AG | Santhera Pharmaceuticals vs. Idorsia | Santhera Pharmaceuticals vs. Newron Pharmaceuticals SpA | Santhera Pharmaceuticals vs. Evolva Holding 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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