Correlation Between Dupont De and Workspace Group
Can any of the company-specific risk be diversified away by investing in both Dupont De and Workspace Group 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 Workspace Group 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 Workspace Group PLC, you can compare the effects of market volatilities on Dupont De and Workspace Group 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 Workspace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Workspace Group.
Diversification Opportunities for Dupont De and Workspace Group
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Workspace is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Workspace Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workspace Group PLC 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 Workspace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workspace Group PLC has no effect on the direction of Dupont De i.e., Dupont De and Workspace Group go up and down completely randomly.
Pair Corralation between Dupont De and Workspace Group
Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.21 times less return on investment than Workspace Group. But when comparing it to its historical volatility, Dupont De Nemours is 1.41 times less risky than Workspace Group. It trades about 0.03 of its potential returns per unit of risk. Workspace Group PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 53,643 in Workspace Group PLC on August 30, 2024 and sell it today you would earn a total of 2,557 from holding Workspace Group PLC or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Dupont De Nemours vs. Workspace Group PLC
Performance |
| Timeline |
| Dupont De Nemours |
| Workspace Group PLC |
Dupont De and Workspace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Workspace Group
The main advantage of trading using opposite Dupont De and Workspace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Workspace Group 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 Workspace Group will offset losses from the drop in Workspace Group's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Workspace Group vs. Derwent London PLC | Workspace Group vs. Hammerson PLC | Workspace Group vs. Supermarket Income REIT | Workspace Group vs. Cairo Communication SpA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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