Correlation Between Dupont De and Unilever Indonesia
Can any of the company-specific risk be diversified away by investing in both Dupont De and Unilever Indonesia 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 Unilever Indonesia 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 Unilever Indonesia Tbk, you can compare the effects of market volatilities on Dupont De and Unilever Indonesia 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 Unilever Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Unilever Indonesia.
Diversification Opportunities for Dupont De and Unilever Indonesia
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Unilever is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Unilever Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever Indonesia Tbk 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 Unilever Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever Indonesia Tbk has no effect on the direction of Dupont De i.e., Dupont De and Unilever Indonesia go up and down completely randomly.
Pair Corralation between Dupont De and Unilever Indonesia
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.47 times more return on investment than Unilever Indonesia. However, Dupont De Nemours is 2.13 times less risky than Unilever Indonesia. It trades about 0.03 of its potential returns per unit of risk. Unilever Indonesia Tbk is currently generating about -0.11 per unit of risk. If you would invest 7,894 in Dupont De Nemours on September 12, 2024 and sell it today you would earn a total of 314.00 from holding Dupont De Nemours or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Unilever Indonesia Tbk
Performance |
| Timeline |
| Dupont De Nemours |
| Unilever Indonesia Tbk |
Dupont De and Unilever Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Unilever Indonesia
The main advantage of trading using opposite Dupont De and Unilever Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Unilever Indonesia 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 Unilever Indonesia will offset losses from the drop in Unilever Indonesia's long position.| Dupont De vs. Griffon | Dupont De vs. Merck Company | Dupont De vs. Brinker International | Dupont De vs. Alcoa Corp |
| Unilever Indonesia vs. Inter Parfums | Unilever Indonesia vs. European Wax Center | Unilever Indonesia vs. Spectrum Brands Holdings | Unilever Indonesia vs. Edgewell Personal Care |
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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