Correlation Between Dupont De and Can2 Termik

Can any of the company-specific risk be diversified away by investing in both Dupont De and Can2 Termik 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 Can2 Termik 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 Can2 Termik AS, you can compare the effects of market volatilities on Dupont De and Can2 Termik 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 Can2 Termik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Can2 Termik.

Diversification Opportunities for Dupont De and Can2 Termik

-0.53

Correlation Coefficient

Dupont De  Can2 Termik

Excellent diversification

The 3 months correlation between Dupont and Can2 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Can2 Termik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can2 Termik AS 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 Can2 Termik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can2 Termik AS has no effect on the direction of Dupont De i.e., Dupont De and Can2 Termik go up and down completely randomly.

Pair Corralation between Dupont De and Can2 Termik

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.62 times more return on investment than Can2 Termik. However, Dupont De Nemours is 1.6 times less risky than Can2 Termik. It trades about 0.01 of its potential returns per unit of risk. Can2 Termik AS is currently generating about -0.11 per unit of risk. If you would invest  7,689  in Dupont De Nemours on December 20, 2024 and sell it today you would earn a total of  4.00  from holding Dupont De Nemours or generate 0.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.75%
Values	Daily Returns

Dupont De Nemours  vs.  Can2 Termik AS

Dupont De Nemours

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dupont De Nemours has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Dupont De is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Can2 Termik AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Can2 Termik AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Dupont De and Can2 Termik

The main advantage of trading using opposite Dupont De and Can2 Termik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Can2 Termik 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 Can2 Termik will offset losses from the drop in Can2 Termik's long position.

The idea behind Dupont De Nemours and Can2 Termik AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.