Correlation Between Dupont De and Jiuzi Holdings

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

Diversification Opportunities for Dupont De and Jiuzi Holdings

0.43

Correlation Coefficient

Dupont De  Jiuzi Holdings

Very weak diversification

The 3 months correlation between Dupont and Jiuzi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jiuzi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiuzi Holdings 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 Jiuzi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiuzi Holdings has no effect on the direction of Dupont De i.e., Dupont De and Jiuzi Holdings go up and down completely randomly.

Pair Corralation between Dupont De and Jiuzi Holdings

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Jiuzi Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 6.29 times less risky than Jiuzi Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The Jiuzi Holdings is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  146.00  in Jiuzi Holdings on December 17, 2024 and sell it today you would earn a total of  348.00  from holding Jiuzi Holdings or generate 238.36% return on investment over 90 days.

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

Dupont De Nemours  vs.  Jiuzi Holdings

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.

Jiuzi Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jiuzi Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Jiuzi Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dupont De and Jiuzi Holdings

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

The idea behind Dupont De Nemours and Jiuzi Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.