Correlation Between Dupont De and NORDSTROM
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By analyzing existing cross correlation between Dupont De Nemours and NORDSTROM INC 695, you can compare the effects of market volatilities on Dupont De and NORDSTROM 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 NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and NORDSTROM.
Diversification Opportunities for Dupont De and NORDSTROM
Average diversification
The 3 months correlation between Dupont and NORDSTROM is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and NORDSTROM INC 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM INC 695 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 NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM INC 695 has no effect on the direction of Dupont De i.e., Dupont De and NORDSTROM go up and down completely randomly.
Pair Corralation between Dupont De and NORDSTROM
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the NORDSTROM. In addition to that, Dupont De is 1.97 times more volatile than NORDSTROM INC 695. It trades about -0.11 of its total potential returns per unit of risk. NORDSTROM INC 695 is currently generating about -0.08 per unit of volatility. If you would invest 10,393 in NORDSTROM INC 695 on August 28, 2024 and sell it today you would lose (230.00) from holding NORDSTROM INC 695 or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Dupont De Nemours vs. NORDSTROM INC 695
Performance |
| Timeline |
| Dupont De Nemours |
| NORDSTROM INC 695 |
Dupont De and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and NORDSTROM
The main advantage of trading using opposite Dupont De and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| NORDSTROM vs. The Coca Cola | NORDSTROM vs. JPMorgan Chase Co | NORDSTROM vs. Dupont De Nemours | NORDSTROM vs. Alcoa 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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