Correlation Between Dupont De and Signature Bank
Can any of the company-specific risk be diversified away by investing in both Dupont De and Signature Bank 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 Signature Bank 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 Signature Bank, you can compare the effects of market volatilities on Dupont De and Signature Bank 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 Signature Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Signature Bank.
Diversification Opportunities for Dupont De and Signature Bank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dupont and Signature is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Signature Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Bank 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 Signature Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Bank has no effect on the direction of Dupont De i.e., Dupont De and Signature Bank go up and down completely randomly.
Pair Corralation between Dupont De and Signature Bank
If you would invest 8,391 in Dupont De Nemours on August 28, 2024 and sell it today you would lose (7.00) from holding Dupont De Nemours or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Dupont De Nemours vs. Signature Bank
Performance |
| Timeline |
| Dupont De Nemours |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dupont De and Signature Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Signature Bank
The main advantage of trading using opposite Dupont De and Signature Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Signature Bank 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 Signature Bank will offset losses from the drop in Signature Bank's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Signature Bank vs. Zions Bancorporation | Signature Bank vs. KeyCorp | Signature Bank vs. Comerica | Signature Bank vs. First Horizon National |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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