Correlation Between Dupont De and Ivy Cundill

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

Diversification Opportunities for Dupont De and Ivy Cundill

-0.13

Correlation Coefficient

Dupont De  Ivy Cundill

Good diversification

The 3 months correlation between Dupont and Ivy is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Ivy Cundill Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Cundill Global 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 Ivy Cundill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Cundill Global has no effect on the direction of Dupont De i.e., Dupont De and Ivy Cundill go up and down completely randomly.

Pair Corralation between Dupont De and Ivy Cundill

Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.11 times less return on investment than Ivy Cundill. In addition to that, Dupont De is 2.13 times more volatile than Ivy Cundill Global. It trades about 0.01 of its total potential returns per unit of risk. Ivy Cundill Global is currently generating about 0.03 per unit of volatility. If you would invest  1,368  in Ivy Cundill Global on October 11, 2024 and sell it today you would earn a total of  115.00  from holding Ivy Cundill Global or generate 8.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.57%
Values	Daily Returns

Dupont De Nemours  vs.  Ivy Cundill Global

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.

Ivy Cundill Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ivy Cundill Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ivy Cundill is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dupont De and Ivy Cundill

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

The idea behind Dupont De Nemours and Ivy Cundill Global 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.