Correlation Between Dupont De and Swedish Match
Can any of the company-specific risk be diversified away by investing in both Dupont De and Swedish Match 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 Swedish Match 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 Swedish Match Ab, you can compare the effects of market volatilities on Dupont De and Swedish Match 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 Swedish Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Swedish Match.
Diversification Opportunities for Dupont De and Swedish Match
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Swedish is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Swedish Match Ab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedish Match Ab 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 Swedish Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedish Match Ab has no effect on the direction of Dupont De i.e., Dupont De and Swedish Match go up and down completely randomly.
Pair Corralation between Dupont De and Swedish Match
If you would invest 1,057 in Swedish Match Ab on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Swedish Match Ab or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Dupont De Nemours vs. Swedish Match Ab
Performance |
| Timeline |
| Dupont De Nemours |
| Swedish Match Ab |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dupont De and Swedish Match Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Swedish Match
The main advantage of trading using opposite Dupont De and Swedish Match positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Swedish Match 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 Swedish Match will offset losses from the drop in Swedish Match's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Swedish Match vs. JBG SMITH Properties | Swedish Match vs. Vita Coco | Swedish Match vs. Eastern Co | Swedish Match vs. Philip Morris International |
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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