Correlation Between Dupont De and Wesmark Growth
Can any of the company-specific risk be diversified away by investing in both Dupont De and Wesmark Growth 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 Wesmark Growth 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 Wesmark Growth Fund, you can compare the effects of market volatilities on Dupont De and Wesmark Growth 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 Wesmark Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Wesmark Growth.
Diversification Opportunities for Dupont De and Wesmark Growth
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Wesmark is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Wesmark Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesmark Growth 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 Wesmark Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesmark Growth has no effect on the direction of Dupont De i.e., Dupont De and Wesmark Growth go up and down completely randomly.
Pair Corralation between Dupont De and Wesmark Growth
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 2.76 times more return on investment than Wesmark Growth. However, Dupont De is 2.76 times more volatile than Wesmark Growth Fund. It trades about 0.17 of its potential returns per unit of risk. Wesmark Growth Fund is currently generating about -0.24 per unit of risk. If you would invest 7,633 in Dupont De Nemours on November 29, 2024 and sell it today you would earn a total of 512.00 from holding Dupont De Nemours or generate 6.71% 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. Wesmark Growth Fund
Performance |
| Timeline |
| Dupont De Nemours |
| Wesmark Growth |
Dupont De and Wesmark Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Wesmark Growth
The main advantage of trading using opposite Dupont De and Wesmark Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Wesmark Growth 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 Wesmark Growth will offset losses from the drop in Wesmark Growth's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Wesmark Growth vs. Wesmark Small Pany | Wesmark Growth vs. Wesmark Government Bond | Wesmark Growth vs. Wesmark Balanced Fund | Wesmark Growth vs. Wesmark West Virginia |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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