Correlation Between Dupont De and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Dupont De and Segall Bryant 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 Segall Bryant 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 Segall Bryant Hamill, you can compare the effects of market volatilities on Dupont De and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Segall Bryant.
Diversification Opportunities for Dupont De and Segall Bryant
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dupont and Segall is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Dupont De i.e., Dupont De and Segall Bryant go up and down completely randomly.
Pair Corralation between Dupont De and Segall Bryant
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.84 times less return on investment than Segall Bryant. In addition to that, Dupont De is 1.33 times more volatile than Segall Bryant Hamill. It trades about 0.04 of its total potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.1 per unit of volatility. If you would invest 1,209 in Segall Bryant Hamill on August 26, 2024 and sell it today you would earn a total of 475.00 from holding Segall Bryant Hamill or generate 39.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Segall Bryant Hamill
Performance |
| Timeline |
| Dupont De Nemours |
| Segall Bryant Hamill |
Dupont De and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Segall Bryant
The main advantage of trading using opposite Dupont De and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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