Correlation Between Dupont De and Skjern Bank
Can any of the company-specific risk be diversified away by investing in both Dupont De and Skjern 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 Skjern 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 Skjern Bank AS, you can compare the effects of market volatilities on Dupont De and Skjern 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 Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Skjern Bank.
Diversification Opportunities for Dupont De and Skjern Bank
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dupont and Skjern is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank AS 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of Dupont De i.e., Dupont De and Skjern Bank go up and down completely randomly.
Pair Corralation between Dupont De and Skjern Bank
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.35 times more return on investment than Skjern Bank. However, Dupont De is 1.35 times more volatile than Skjern Bank AS. It trades about 0.01 of its potential returns per unit of risk. Skjern Bank AS is currently generating about -0.3 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Skjern Bank AS
Performance |
| Timeline |
| Dupont De Nemours |
| Skjern Bank AS |
Dupont De and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Skjern Bank
The main advantage of trading using opposite Dupont De and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Skjern 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Skjern Bank vs. Dataproces Group AS | Skjern Bank vs. cBrain AS | Skjern Bank vs. ALK Abell AS | Skjern Bank vs. ChemoMetec AS |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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