Correlation Between Dupont De and AXS 2X
Can any of the company-specific risk be diversified away by investing in both Dupont De and AXS 2X 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 AXS 2X 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 AXS 2X Innovation, you can compare the effects of market volatilities on Dupont De and AXS 2X 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 AXS 2X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and AXS 2X.
Diversification Opportunities for Dupont De and AXS 2X
Significant diversification
The 3 months correlation between Dupont and AXS is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and AXS 2X Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXS 2X Innovation 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 AXS 2X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXS 2X Innovation has no effect on the direction of Dupont De i.e., Dupont De and AXS 2X go up and down completely randomly.
Pair Corralation between Dupont De and AXS 2X
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the AXS 2X. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 3.84 times less risky than AXS 2X. The stock trades about -0.03 of its potential returns per unit of risk. The AXS 2X Innovation is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 5,999 in AXS 2X Innovation on August 24, 2024 and sell it today you would earn a total of 2,768 from holding AXS 2X Innovation or generate 46.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. AXS 2X Innovation
Performance |
| Timeline |
| Dupont De Nemours |
| AXS 2X Innovation |
Dupont De and AXS 2X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and AXS 2X
The main advantage of trading using opposite Dupont De and AXS 2X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, AXS 2X 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 AXS 2X will offset losses from the drop in AXS 2X's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| AXS 2X vs. Direxion Daily SP | AXS 2X vs. Direxion Daily Semiconductor | AXS 2X vs. Direxion Daily Technology | AXS 2X vs. Direxion Daily Small |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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