Correlation Between Dupont De and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Dupont De and Lyxor UCITS 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 Lyxor UCITS 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 Lyxor UCITS Stoxx, you can compare the effects of market volatilities on Dupont De and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Lyxor UCITS.
Diversification Opportunities for Dupont De and Lyxor UCITS
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and Lyxor is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Lyxor UCITS Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Stoxx 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Stoxx has no effect on the direction of Dupont De i.e., Dupont De and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Dupont De and Lyxor UCITS
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.96 times more return on investment than Lyxor UCITS. However, Dupont De is 1.96 times more volatile than Lyxor UCITS Stoxx. It trades about 0.01 of its potential returns per unit of risk. Lyxor UCITS Stoxx is currently generating about -0.12 per unit of risk. If you would invest 8,391 in Dupont De Nemours on August 29, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Lyxor UCITS Stoxx
Performance |
| Timeline |
| Dupont De Nemours |
| Lyxor UCITS Stoxx |
Dupont De and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Lyxor UCITS
The main advantage of trading using opposite Dupont De and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi ETF PEA | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Amundi PEA Eau |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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