Correlation Between Dupont De and CITIGROUP
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By analyzing existing cross correlation between Dupont De Nemours and CITIGROUP INC 585, you can compare the effects of market volatilities on Dupont De and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and CITIGROUP.
Diversification Opportunities for Dupont De and CITIGROUP
Poor diversification
The 3 months correlation between Dupont and CITIGROUP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and CITIGROUP INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 585 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 585 has no effect on the direction of Dupont De i.e., Dupont De and CITIGROUP go up and down completely randomly.
Pair Corralation between Dupont De and CITIGROUP
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.36 times more return on investment than CITIGROUP. However, Dupont De is 1.36 times more volatile than CITIGROUP INC 585. It trades about 0.01 of its potential returns per unit of risk. CITIGROUP INC 585 is currently generating about -0.21 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 Together |
| Strength | Significant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Dupont De Nemours vs. CITIGROUP INC 585
Performance |
| Timeline |
| Dupont De Nemours |
| CITIGROUP INC 585 |
Dupont De and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and CITIGROUP
The main advantage of trading using opposite Dupont De and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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