Correlation Between Gold Fields and Dupont De
Can any of the company-specific risk be diversified away by investing in both Gold Fields and Dupont De 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 Gold Fields and Dupont De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and Dupont De Nemours, you can compare the effects of market volatilities on Gold Fields and Dupont De 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 Gold Fields with a short position of Dupont De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and Dupont De.
Diversification Opportunities for Gold Fields and Dupont De
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gold and Dupont is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and Dupont De Nemours in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dupont De Nemours and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with Dupont De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dupont De Nemours has no effect on the direction of Gold Fields i.e., Gold Fields and Dupont De go up and down completely randomly.
Pair Corralation between Gold Fields and Dupont De
Considering the 90-day investment horizon Gold Fields Ltd is expected to under-perform the Dupont De. In addition to that, Gold Fields is 1.9 times more volatile than Dupont De Nemours. It trades about -0.23 of its total potential returns per unit of risk. Dupont De Nemours is currently generating about 0.03 per unit of volatility. If you would invest 8,391 in Dupont De Nemours on August 28, 2024 and sell it today you would earn a total of 52.00 from holding Dupont De Nemours or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Fields Ltd vs. Dupont De Nemours
Performance |
| Timeline |
| Gold Fields |
| Dupont De Nemours |
Gold Fields and Dupont De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and Dupont De
The main advantage of trading using opposite Gold Fields and Dupont De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, Dupont De 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 Dupont De will offset losses from the drop in Dupont De's long position.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |