Correlation Between Dupont De and SFCCN

Can any of the company-specific risk be diversified away by investing in both Dupont De and SFCCN 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 SFCCN 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 SFCCN 53 13 MAY 28, you can compare the effects of market volatilities on Dupont De and SFCCN 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 SFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and SFCCN.

Diversification Opportunities for Dupont De and SFCCN

-0.36

Correlation Coefficient

Dupont De  SFCCN

Very good diversification

The 3 months correlation between Dupont and SFCCN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and SFCCN 53 13 MAY 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFCCN 53 13 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 SFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFCCN 53 13 has no effect on the direction of Dupont De i.e., Dupont De and SFCCN go up and down completely randomly.

Pair Corralation between Dupont De and SFCCN

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the SFCCN. In addition to that, Dupont De is 3.33 times more volatile than SFCCN 53 13 MAY 28. It trades about 0.0 of its total potential returns per unit of risk. SFCCN 53 13 MAY 28 is currently generating about -0.01 per unit of volatility. If you would invest  9,890  in SFCCN 53 13 MAY 28 on September 15, 2024 and sell it today you would lose (13.00) from holding SFCCN 53 13 MAY 28 or give up 0.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	35.94%
Values	Daily Returns

Dupont De Nemours  vs.  SFCCN 53 13 MAY 28

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 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.

SFCCN 53 13

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SFCCN 53 13 MAY 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SFCCN 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 SFCCN

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

The idea behind Dupont De Nemours and SFCCN 53 13 MAY 28 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.