Correlation Between Dupont De and AFLAC
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By analyzing existing cross correlation between Dupont De Nemours and AFLAC INC 4, you can compare the effects of market volatilities on Dupont De and AFLAC 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 AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and AFLAC.
Diversification Opportunities for Dupont De and AFLAC
Poor diversification
The 3 months correlation between Dupont and AFLAC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and AFLAC INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC INC 4 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 AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC INC 4 has no effect on the direction of Dupont De i.e., Dupont De and AFLAC go up and down completely randomly.
Pair Corralation between Dupont De and AFLAC
Allowing for the 90-day total investment horizon Dupont De is expected to generate 8.31 times less return on investment than AFLAC. But when comparing it to its historical volatility, Dupont De Nemours is 1.15 times less risky than AFLAC. It trades about 0.03 of its potential returns per unit of risk. AFLAC INC 4 is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 8,023 in AFLAC INC 4 on August 27, 2024 and sell it today you would earn a total of 380.00 from holding AFLAC INC 4 or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Dupont De Nemours vs. AFLAC INC 4
Performance |
| Timeline |
| Dupont De Nemours |
| AFLAC INC 4 |
Dupont De and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and AFLAC
The main advantage of trading using opposite Dupont De and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| AFLAC vs. AEP TEX INC | AFLAC vs. US BANK NATIONAL | AFLAC vs. Eat Beyond Global | AFLAC vs. Charles Schwab Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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