Correlation Between Dupont De and Calvert International

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

Diversification Opportunities for Dupont De and Calvert International

0.92

Correlation Coefficient

Dupont De  Calvert International

Almost no diversification

The 3 months correlation between Dupont and Calvert is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Calvert International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Dupont De i.e., Dupont De and Calvert International go up and down completely randomly.

Pair Corralation between Dupont De and Calvert International

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Calvert International. In addition to that, Dupont De is 1.26 times more volatile than Calvert International Opportunities. It trades about -0.55 of its total potential returns per unit of risk. Calvert International Opportunities is currently generating about -0.4 per unit of volatility. If you would invest  1,695  in Calvert International Opportunities on October 11, 2024 and sell it today you would lose (92.00) from holding Calvert International Opportunities or give up 5.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Dupont De Nemours  vs.  Calvert International Opportun

Dupont De Nemours

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Calvert International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert International Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Dupont De and Calvert International

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

The idea behind Dupont De Nemours and Calvert International Opportunities 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.