Correlation Between Dupont De and Nationwide Bailard

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

Diversification Opportunities for Dupont De and Nationwide Bailard

0.59

Correlation Coefficient

Dupont De  Nationwide Bailard

Very weak diversification

The 3 months correlation between Dupont and Nationwide is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Nationwide Bailard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Bailard 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 Nationwide Bailard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Bailard has no effect on the direction of Dupont De i.e., Dupont De and Nationwide Bailard go up and down completely randomly.

Pair Corralation between Dupont De and Nationwide Bailard

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.26 times more return on investment than Nationwide Bailard. However, Dupont De Nemours is 3.85 times less risky than Nationwide Bailard. It trades about -0.64 of its potential returns per unit of risk. Nationwide Bailard Technology is currently generating about -0.24 per unit of risk. If you would invest  8,354  in Dupont De Nemours on October 8, 2024 and sell it today you would lose (879.00) from holding Dupont De Nemours or give up 10.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Dupont De Nemours  vs.  Nationwide Bailard Technology

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 latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Nationwide Bailard

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nationwide Bailard Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic 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 Nationwide Bailard

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

The idea behind Dupont De Nemours and Nationwide Bailard Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.