Correlation Between Selective Insurance and Dupont De
Can any of the company-specific risk be diversified away by investing in both Selective Insurance 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 Selective Insurance and Dupont De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selective Insurance Group and Dupont De Nemours, you can compare the effects of market volatilities on Selective Insurance 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 Selective Insurance with a short position of Dupont De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selective Insurance and Dupont De.
Diversification Opportunities for Selective Insurance and Dupont De
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Selective and Dupont is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Selective Insurance Group 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 Selective Insurance 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 Selective Insurance Group 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 Selective Insurance i.e., Selective Insurance and Dupont De go up and down completely randomly.
Pair Corralation between Selective Insurance and Dupont De
Assuming the 90 days horizon Selective Insurance Group is expected to generate 2.0 times more return on investment than Dupont De. However, Selective Insurance is 2.0 times more volatile than Dupont De Nemours. It trades about 0.12 of its potential returns per unit of risk. Dupont De Nemours is currently generating about 0.14 per unit of risk. If you would invest 7,466 in Selective Insurance Group on December 4, 2024 and sell it today you would earn a total of 634.00 from holding Selective Insurance Group or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selective Insurance Group vs. Dupont De Nemours
Performance |
| Timeline |
| Selective Insurance |
| Dupont De Nemours |
Selective Insurance and Dupont De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selective Insurance and Dupont De
The main advantage of trading using opposite Selective Insurance and Dupont De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selective Insurance 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.| Selective Insurance vs. ANTA Sports Products | Selective Insurance vs. VITEC SOFTWARE GROUP | Selective Insurance vs. PSI Software AG | Selective Insurance vs. AXWAY SOFTWARE EO |
| Dupont De vs. PennyMac Mortgage Investment | Dupont De vs. CHRYSALIS INVESTMENTS LTD | Dupont De vs. Chiba Bank | Dupont De vs. Apollo Investment 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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